Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Human Rights
• Diversity & Inclusion
• Ethical Conduct

Environmental Achievements

• Reduced CO2 footprint by 37 tons in Scope 1 and 2; Significant improvement in total direct energy usage per output scaling factor, declining from 5’599 kWh/FTE in 2021 to 4’471 kWh/FTE in 2022.
• New headquarters in Meyrin, Geneva, reduced CO2 emissions by more than 50% compared to former offices.

Social Achievements

• Improved Global Engagement Index by 2 percentage points compared to 2020; Reduction of voluntary turnover from 10% in 2021 to less than 7% in 2022.
• Hired more than 150 new talents across the world; One third of manager/leadership positions and one fourth of non-managerial positions filled internally.
• Donated to the Swiss Red Cross in support of Ukrainian refugees; Extended assistance and support to those in need in Turkey and Syria after the earthquake.

Governance Achievements

• Expanded Executive Committee with new members; 99.8% of employees signed the Code of Conduct.
• Aligned ESG reporting to the NASDAQ ESG Reporting Guide 2.0; Executive Committee directly oversees climate-related risks from April 1, 2023.

Climate Goals & Targets

Environmental Challenges

• Lockdowns in China impacting production and supply chains; Component shortages; Geopolitical challenges; Market adjustments and component shortages impacting growth in some businesses and regions; Geopolitical tensions causing slowdowns.

Mitigation Strategies

• Teams established second sources for components; Enhanced communication with customers and suppliers; Fair allocation of components across customers; Investments in new production plant in Malaysia; Continued investment in R&D (8-10% of sales); Close cooperation with partners along supply chains; Use of train and sea freight for outbound transportation.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Code of Conduct covers suppliers and vendors; All new suppliers of direct materials must have valid ISO 14001 certification

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Transition Risks

• Geopolitical tensions; Supply chain disruptions

Opportunities

• Growth in renewable energy and electric vehicle markets

Reporting Standards

Frameworks Used: NASDAQ ESG Reporting Guide 2.0, UNGC

Certifications: ISO 14001:2015

Third-party Assurance: EcoVadis

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)

LEM's products and initiatives contribute to these goals through sustainable energy solutions, innovation in electrical measurement, responsible production practices, and climate action initiatives.

Sustainable Products & Innovation

• Integrated current sensors (ICS); DC meter for charging stations; Sensors for solar panels and wind turbines

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate change
• Waste
• Circular economy
• Consumer information
• Own workforce – working conditions
• Business ethics
• Conflict minerals
• Child labor

Environmental Achievements

• Reduced Scope 1 and 2 (market-based) emissions by 80% compared to 2022.
• Reached 87% renewable electricity across the business compared to 37% in 2022.
• Reduced waste generated by 33% compared to 2022 (from 529 tonnes to 357 tonnes).

Social Achievements

• Introduced a new Labor & Human Rights Policy.
• Launched a new onboarding program with a 4.7/5 satisfaction score.
• Decreased global voluntary turnover rate to 6% from 7% in 2022.
• Delivered 18,800 hours of training, exceeding the target of 12 hours per indirect employee.

Governance Achievements

• Completed a Double Materiality Assessment (DMA).
• Established a sustainability department.
• Linked a portion of Executive Management and senior leaders' short-term incentives to GHG emissions reduction targets.
• Introduced a new whistleblowing process with a 98% employee training completion rate.

Climate Goals & Targets

Environmental Challenges

• Disruptions in production lines, damage to assets, supply chain disruption caused by adverse weather events.
• Inability to develop and deploy products meeting changing customer demand for more sustainable products.
• Depletion of non-renewable resources.
• Potential for financial loss or damage due to failure to comply with business ethics regulations.
• Risks associated with conflict minerals and child labor in the supply chain.

Mitigation Strategies

• Transitioning from air freight to rail and sea freight for intercompany transportation.
• Investing in EACs and renewable energy tariffs.
• Implementing a comprehensive whistleblowing process.
• Developing a new and enhanced due diligence program and risk assessment approach.
• Integrating human rights checks into quality audit processes.
• Developing a human rights risk assessment process aligned with international standards.

Supply Chain Management

Responsible Procurement

• Procurement Risk Assessment
• Supplier General Requirements Manual
• Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Adverse weather events

Transition Risks

• Changing customer demand for sustainable products

Opportunities

• Developing low-carbon technologies

Reporting Standards

Frameworks Used: GRI, ESRS

Certifications: ISO 14001

Sustainable Products & Innovation

• OLCI sensor

Awards & Recognition

• EcoVadis Bronze Medal