REHAU Industries SE & Co. KG
Climate Impact & Sustainability Data (2021, 2022, 2023)
Reporting Period: 2021
Environmental Metrics
ESG Focus Areas
- Sustainable growth
- Accelerating climate protection
- Driving forward the circular economy
- Promoting diversity
Environmental Achievements
- Increased recycling rate to more than 15 percent
- Reduced CO₂e emissions by 42.6% compared to 2018
Social Achievements
- Launched Global Mindset project to promote diversity and inclusion
- Accident rate fell in 2021 compared to the previous year
Governance Achievements
- Reorganized into two independent subgroups: REHAU Automotive and REHAU Industries
Climate Goals & Targets
- REHAU Automotive: Achieve zero Scope 1 emissions by 2025
- Minimum proportion of 15% women in management positions by 2025
- Increase average proportion of recyclates in EMEA products to 15% by 2025
- Reduce primary energy consumption per EUR of factory revenue by 15% relative to 2019 by 2025
- REHAU Automotive: Achieve zero Scope 2 emissions by 2025
- REHAU Industries: Achieve zero Scope 2 emissions by 2025
- Reduce water consumption per EUR of factory revenue by 10% relative to 2019 by 2025
- Reduce production waste by 2% relative to the previous year by 2025
Environmental Challenges
- Raw material shortages, delivery delays, increasing costs due to the COVID-19 pandemic
- Appalling developments in Eastern Europe impacting business operations and supply chain
Mitigation Strategies
- Active task force management and strategic alliances to bridge materials bottlenecks and reduce transport costs by switching to local suppliers
- Discontinued business operations in Russia and Belarus (REHAU Industries)
Supply Chain Management
Supplier Audits: 60 audit measures in 2021
Responsible Procurement
- Supplier Code of Conduct (SCC), requiring respect for human and personal rights, compliance with environmental and occupational health and safety standards, and ethical business conduct.
- Third Party Due Diligence (TPDD) system to review suppliers for compliance risks.
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Regulatory changes, market shifts related to EU Taxonomy and Green Deal
Opportunities
- Development of energy-efficient products, renewable energy sources
Reporting Standards
Frameworks Used: GRI Standards (Core option), UN Global Compact
Certifications: ISO 14001, ISO 45001, ISO 50001
Third-party Assurance: TÜV Rheinland (for occupational safety, health, energy consumption, and emissions)
UN Sustainable Development Goals
- SDG 7 (Affordable and clean energy)
- SDG 8 (Decent work and economic growth)
- SDG 10 (Reduced inequalities)
- SDG 12 (Responsible consumption and production)
- SDG 13 (Climate action)
REHAU's initiatives contribute to these goals through various programs and targets related to sustainable growth, climate protection, circular economy, and diversity.
Sustainable Products & Innovation
- RAUKANTEX eco.protect (Interior Solutions), Window ID (Window Solutions)
Awards & Recognition
- Top Employer (Germany)
Reporting Period: 2022
Environmental Metrics
ESG Focus Areas
- Environment
- Social
- Governance
Environmental Achievements
- Reduced scope 1 and scope 2 emissions by almost 64 percent since 2020.
- REHAU Automotive achieved zero tonnes of CO₂e in scope 2 on the balance sheet in 2022.
- REHAU Industries reduced emissions by 67.9 percent compared to the 2018 baseline.
Social Achievements
- Launched an initiative to promote diversity and inclusion.
- Achieved a 74% participation rate and 60% average agreement in pulse surveys at REHAU Automotive.
- Achieved a 77% participation rate and 65% average agreement in pulse surveys at REHAU Industries.
Governance Achievements
- Established a Group Council for Sustainability.
- Revised and significantly expanded the Supplier Code of Conduct.
- Created an MPC unit at REHAU Industries to manage material and product compliance.
Climate Goals & Targets
- Balance sheet climate neutrality by 2040 (REHAU Industries).
- Produce all products in a carbon-neutral way by 2035 (REHAU Industries).
- Achieve balance sheet climate neutrality at all locations by 2035 (REHAU Industries).
- Achieve a 17% proportion of women in management positions by 2025 (REHAU Industries).
- Achieve a 20% proportion of women in management positions by 2030 (REHAU Industries).
- Double the recycling ratio by 2026 (compared to 2022).
- Reduce emissions from production (scopes 1 & 2) to zero by 2027 (REHAU Automotive).
- Achieve zero scope-2 emissions by 2025 (REHAU overall).
Environmental Challenges
- Geopolitical crises, European energy crisis, raw material shortages, and European sustainability regulations.
- Transition to a circular economy and phasing out fossil raw materials.
- Integration of the circular economy into the operational strategy of OEMs (REHAU Automotive).
- External factors such as industry and customer acceptance, standardization, and market conditions (REHAU Industries).
Mitigation Strategies
- Revised energy and procurement strategy (70-30-3 rule).
- Gradual conversion of locations to renewable energy sources.
- Construction of photovoltaic systems.
- Development of a REHAU Automotive recycling strategy.
- Development of a composite material with recycled content for crash-related visual applications for bumpers.
- Increased use of recycled materials across all products (REHAU Industries).
Supply Chain Management
Supplier Audits: 102 audit measures in 2022
Responsible Procurement
- Supplier Code of Conduct; sustainability requirements integrated into supplier audits; due diligence process for high-risk suppliers.
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events, floods, heat waves, groundwater problems
Transition Risks
- Regulatory changes, market shifts, customer demands for reduced emissions and sustainable practices.
Opportunities
- Development of energy-efficient products; transition to a circular economy.
Reporting Standards
Frameworks Used: GRI, ESRS, EU Taxonomy
Certifications: ISO 14001, ISO 50001, ISO 45001, EcoVadis Gold, IATF 16949, ISCC
Third-party Assurance: TÜV Rheinland
UN Sustainable Development Goals
- Goal 3 (Good Health and Well-being)
- Goal 4 (Quality Education)
- Goal 6 (Clean Water and Sanitation)
- Goal 10 (Reduced Inequalities)
- Goal 11 (Sustainable Cities and Communities)
- Goal 12 (Responsible Consumption and Production)
- Goal 13 (Climate Action)
- Goal 17 (Partnerships for the Goals)
REHAU's social and cultural commitment at international locations focuses on these SDGs.
Sustainable Products & Innovation
- RAUKANTEX eco product line; products with increased recycled material content; development of energy-efficient products.
Awards & Recognition
- EcoVadis Gold
Reporting Period: 2023
Environmental Metrics
ESG Focus Areas
- Climate protection
- Circular economy
- Diversity and Inclusion
- Sustainable corporate management
- Environmental and social standards in the value chain
Environmental Achievements
- Reduced CO2e emissions by 53% compared to 2018 baseline.
- 65% of electricity consumed at plants came from renewable energy sources in 2023.
- Achieved a global recycling quota of 20.2%.
- EMEA recyclates quota amounted to 23.4%.
Social Achievements
- Launched "Family for Families" donation fund to support families affected by the war in Ukraine and extended support to employees affected by earthquakes in Turkey.
- 80% participation rate in worldwide employee pulse surveys.
- Ten countries received "Great Place to Work" certification.
Governance Achievements
- Sustainability strategy integrated into the annual strategic process for the Industries subgroup.
- Variable remuneration for managers at levels E0 to E2 includes sustainability-related benefits.
- Whistleblowing process adapted to comply with the LkSG (German Supply Chain Act) and the European Whistleblowing Directive.
Climate Goals & Targets
- Net zero emissions by 2040 (Window Solutions division)
- Long-term alignment with the 1.5°C target of the Paris Agreement
- Achieve 30% share of green electricity via off-site or on-site PPAs in EMEA
- Achieve 20% recycled content in REHAU products worldwide by 2025
- Reduce water consumption per euro of factory revenue by 10% by 2025
- Achieve zero scope 2 emissions by 2025
- Achieve 17% women in management positions by 2025
Environmental Challenges
- Geopolitical crises and European sustainability regulations.
- Slow adoption of new European reporting standards and circular economy principles in the construction and furniture industries.
- Increased use of recycled materials and stricter material requirements.
- Reserved customer response to a holistic approach to sustainability in the B2B sector.
- Implementation of the circular economy in various industries requires extensive collaboration and transparency.
Mitigation Strategies
- Preparing for imminent regulatory requirements (CSRD, EU Taxonomy).
- Further development of climate adaptation strategies and analysis of individual locations.
- Development of a standardized process for assessing plant locations.
- Development of climate change risk/site analysis checklist.
- Implementation of product take-back projects and lighthouse projects in the product area.
- Increased use of recycled materials and stricter requirements concerning the use of materials or demolition.
Supply Chain Management
Supplier Audits: 37 audits in 2023
Responsible Procurement
- REHAU Supplier Code of Conduct (SCoC) obligatory for all strategic suppliers; includes UN Global Compact principles; risk-based approach to supplier assessment; focus on quality, risk, availability, environmental protection, working conditions, and economic stability
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
Transition Risks
- Regulatory changes, market shifts
Opportunities
- Development of energy-efficient products
- Realignment of electricity procurement
- Transformation to a circular economy
Reporting Standards
Frameworks Used: GRI Standards (2021), ESRS, UN Global Compact
Certifications: ISO 14001, ISO 50001, ISO 45001, ISCC PLUS
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- SDG 3 (Good Health and Well-being)
- SDG 4 (Quality Education)
- SDG 6 (Clean Water and Sanitation)
- SDG 10 (Reduced Inequalities)
- SDG 11 (Sustainable Cities and Communities)
- SDG 12 (Responsible Consumption and Production)
- SDG 13 (Climate Action)
- SDG 15 (Life on Land)
- SDG 17 (Partnerships for the Goals)
Details on how initiatives contribute to these goals in Appendix
Sustainable Products & Innovation
- RAUKANTEX eco.protect (Interior Solutions); ARTEVO window system (Window Solutions)
Awards & Recognition
- EcoVadis Gold medal (three times); CDP Climate Change B rating (three years)