Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Energy expenses amounted to 1.6% of revenues, which was the same level as in the previous year (2018: 1.6%).
• Extended its environment management system by the ISO 14001 standard and since then further strengthened it on an ongoing basis.

Social Achievements

• After a large-scale apprentice recruiting offensive, we have managed to reach an absolute peak in our industry area with around 100 young people presently in apprentice training at Pankl.
• Pankl has signed the “We give future” training-charter of the Federal Ministry for Digitalisation and Economic Affairs with the future aim to continuously share our positive impressions with the society.
• In 2019, we focused on “healthy eyes”. We carried out workshops on this topic, which participants considered to be positive and helpful.
• In November 2019, we carried out our first health day dedicated for our apprentices.
• Pankl was awarded to be one of the top three most family friendly employers in Styria.

Governance Achievements

• The audit did not raise any issues or complaints. The auditor issued unqualified audit opinions on the financial statements and the status report of the Company and the Group.

Climate Goals & Targets

Environmental Challenges

• The entire automotive sector was impacted by the new emission testing procedures introduced in 2018 and tightened in 2019. Hence, the high-performance division of the Pankl Group suffered low visibility and high volatility, which caused a deterioration of profitability.
• Brexit
• COVID-19

Mitigation Strategies

• In 2019, we started productivity and efficiency improvement programmes in nearly all of our business units both in our own production as well as in the processes of our external suppliers.
• We continuously evaluate the situation and execute measures depending about the respective Pankl subsidiary to reduce the risks (Brexit).
• The Pankl Management Board is continuously monitoring the effects the Covid-19 pandemic is causing on the global economy. The consequential risks for the Pankl Group, particularly as to key markets and supply chains are being closely tracked.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Certifications: ISO 9001, ISO 14001, ISO/TS 16949, VDA 6.1, AS/EN 9100, NADCAP

Third-party Assurance: KPMG Austria GmbH

Awards & Recognition

• company with state recognised trainee program

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Extended environment management system by ISO 14001 standard and further strengthening it on an ongoing basis since 2014.

Social Achievements

• Carried out 9,707 training hours and spent €125,912 on external training courses for employees; hired 184 new employees in Austrian facilities; implemented a new incentive program called “employees recruit employees”.

Governance Achievements

• Internal Audit department responsible for ongoing improvement of the Internal Control System; regular internal and external audits to continuously improve and optimize processes.

Climate Goals & Targets

Environmental Challenges

• Supply chain problems due to the Coronavirus pandemic; acute lack of semiconductors in the automotive sector; high inflation rates due to strong increases in raw material and energy prices.

Mitigation Strategies

• Strict liquidity monitoring on a weekly basis for all subsidiaries; safety stock of critical production resources to deal with sudden supply chain interruptions; strict measures to prevent Covid outbreaks in facilities.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Certifications: ISO 9001, ISO 14001, ISO/TS 16949, VDA 6.1, AS/EN 9100, EASA, Austro Control (Part 21G POA und Part 21J DOA), NADCAP (AC7108, AC7114)

Third-party Assurance: KPMG Austria GmbH

Sustainable Products & Innovation

• 3D-printed titanium wheel carrier; market-ready carbon-fibre drive shaft; efficiency-enhanced high-performance engine.

Awards & Recognition

• One of the top three most family-friendly employers in Styria in 2019

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Protection
• Energy Efficiency
• Biodiversity
• Social Sustainability
• Employee Well-being
• Diversity and Inclusion
• Data Protection
• Information Security
• Cybersecurity
• Governance
• Supplier Relations
• Anti-corruption
• Human Rights

Environmental Achievements

• Increased renewable energy generation by 43% (567,797 kWh compared to 396,863 kWh in 2022).
• Expansion of photovoltaic systems.
• Implementation of heat recovery projects.
• Use of renewable energies.
• Significant improvements in energy efficiency and environmental protection through innovative projects (new Aerospace building and a high-performance deep-hole drilling machine).
• Offsetting a large part of CO2 emissions from company vehicles (Scope 1) through the purchase of climate protection certificates (350 tons of CO2).
• Successful ISO 14001 certifications.
• Recycling of aluminum and steel scrap in foundries in Tuttlingen and Neuhausen.

Social Achievements

• Adaptation and consolidation of the Code of Conduct.
• Publication of a fundamental declaration on human rights compliance.
• Intensive training for employees, managers, and board members on anti-corruption and business ethics.
• Implementation of a globally valid and publicly accessible complaint procedure.
• New consortial financing with integrated ESG KPI components.
• Award as the most family-friendly company in Styria (PARS).
• Award "Ehrenamtsfreundlicher Arbeitgeber im Bevölkerungsschutz" (SHW, Aalen and Bad Schussenried).

Governance Achievements

• Establishment of a globally valid and publicly accessible complaint procedure in accordance with the Supply Chain Due Diligence Act.
• Appointment of a human rights officer in both PARS and SHW.

Climate Goals & Targets

Environmental Challenges

• Climate change impacts (extreme weather events, supply chain disruptions, energy supply fluctuations, stricter environmental regulations).
• Risks associated with the management of the supply chain (oversight of human rights, transparency).
• Risks related to corruption and bribery.
• Data protection and cybersecurity risks.

Mitigation Strategies

• Investment in a risk management system and an intelligent analysis system to prepare for climate risks.
• Analysis of supply chains for potential vulnerabilities.
• Investment in renewable energies to reduce dependence on fossil fuels.
• Implementation of modern technologies and efficient production processes to optimize energy consumption.
• Development of a specific Scope 3 target (2024).
• Implementation of a globally valid and publicly accessible complaint procedure.
• Establishment of a risk analysis for the supply chain.
• Publication of a fundamental declaration on human rights compliance.
• Appointment of a human rights officer in both PARS and SHW.
• Implementation of management systems for data protection, information security, and cybersecurity.
• Conducting awareness training and investments in security systems.

Supply Chain Management

Supplier Audits: 3,374 suppliers informed about the updated Code of Conduct (2023)

Responsible Procurement

• Code of Conduct
• Sustainability requirements

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Storms
• Heat waves
• Droughts
• Earthquakes

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Sustainable innovation

Reporting Standards

Frameworks Used: GRI Standards, EU Taxonomy Regulation, CSRD

Certifications: ISO 9001, IATF 16949, AS/EN 9100, VDA 6.1, ISO 14001, ISO 50001, ISO 45001, VDA ISA (TISAX), Nadcap

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 7
• SDG 12
• SDG 13

Initiatives contribute to these goals through renewable energy, resource efficiency, and climate protection measures.

Sustainable Products & Innovation

• Lightweight components
• Energy-efficient products

Awards & Recognition

• Most family-friendly company in Styria (PARS)
• Ehrenamtsfreundlicher Arbeitgeber im Bevölkerungsschutz (SHW)