Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Climate Change
• Employee Well-being
• Diversity & Inclusion
• Supply Chain Responsibility
• Good Governance

Environmental Achievements

• CO2 emissions decreased by 5.4% compared to 2015.
• Waste reduced to 7.2% (from 8.7% in 2018) of total material consumption.
• Recycling rate increased to 85.5% (from 79.7% in 2018).
• Average CO2 emissions of TKH’s Dutch leased fleet decreased to 91.1 grams/km (from 91.8 grams/km in 2018).

Social Achievements

• Employee satisfaction score of 7.3 (slightly above 2018).
• Number of employees with restricted opportunities on the labour market increased to 120 (from 94 in 2018).
• Community investments of 0.5% of net profit before one-off income and expenses.
• Average training hours per employee: 24 hours.

Governance Achievements

• No breaches of the code of conduct reported.
• Implementation of the ‘Simplify & Accelerate’ program.
• Active divestment program, realizing €250 million of targeted €300-€350 million turnover.

Climate Goals & Targets

Environmental Challenges

• Reluctance to invest in some market segments due to geopolitical and social developments.
• Difficult market conditions in Industrial Solutions.
• Nitrogen and PFAS crisis in the Netherlands.
• Reluctance to invest among top-five tire manufacturers due to negative developments in the automotive industry.
• Shortage of skilled workers.

Mitigation Strategies

• ‘Simplify & Accelerate’ program to simplify the organization and improve profitability.
• Divestment of activities with limited organic growth potential.
• Integration of companies to achieve economies of scale.
• Investments in R&D and innovation (20.5% of turnover).
• Focus on vertical growth markets.

Supply Chain Management

Supplier Audits: 78% of suppliers with purchase volume above €1 million audited (2019)

Responsible Procurement

• Code of supply focusing on human rights, environment, health & safety, and ethical conduct.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: ISO 14001, OHSAS 18001, ISO 50001 (German operating companies)

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)

TKH's initiatives contribute to these goals through sustainable energy solutions, employee well-being, innovative technologies, and responsible resource management.

Sustainable Products & Innovation

• Subsea cable systems
• Tire building systems
• CEDD/AGL solution
• Parking guidance systems
• Vision technology

Environmental Metrics

ESG Focus Areas

• Climate change
• Diversity & Inclusion
• Governance
• Resource efficiency
• Responsible production

Environmental Achievements

• Net carbon footprint for scopes 1 and 2 decreased by 42.7% in 2022 compared with the reference year 2019
• Increased renewable energy share to 37.5% in 2022, from 2.2% in 2019
• Recycling of most important raw materials: 88.0%
• Waste of most important raw materials compared to total relevant material consumption: 5.3%

Social Achievements

• Employee satisfaction score: 7.6
• Accident rate (LTIFR): 0.8
• Illness rate: 4.04%
• Percentage of female members in executive and senior management teams: 18.4%
• Number of employees with disabilities: 105

Governance Achievements

• Code of Conduct signed by 97.7% of employees
• Code of Supply signed by 91.9% of strategic suppliers
• No breaches of the Code of Conduct
• One report received through the Whistleblower Procedure (HR-related, not a breach)

Climate Goals & Targets

Environmental Challenges

• Supply chain constraints (material and component shortages)
• Inflation
• Employee turnover and shortage of new employees
• Component shortages at Tire Building systems leading to operational inefficiencies
• EU anti-dumping duties on fibre optic cables

Mitigation Strategies

• Close cooperation with suppliers and creative procurement solutions
• Strategic Investment Program of €200 million to increase production capacity
• Focus on employee satisfaction and acting as ambassadors to attract new employees
• Initiated construction of a fibre optic cable plant in Poland and easing of component shortages at Tire Building systems

Supply Chain Management

Supplier Audits: 91.9% of strategic suppliers signed Code of Supply

Responsible Procurement

• Code of Supply covering human rights, environment, OH&S, and ethical behavior

Climate-Related Risks & Opportunities

Physical Risks

• Rising temperatures, flooding, extreme weather

Transition Risks

• CO2 taxation/pricing, high investment costs for emission reduction technologies, failure to meet stakeholder expectations on climate change

Opportunities

• Efficient production processes, lower emission energy sources, development of zero-emission products, participation in sustainable energy programs, circular economy

Reporting Standards

Frameworks Used: GRI, TCFD, UN SDGs, EU Taxonomy

Certifications: ISO 14001, ISO 45001, PSO

Third-party Assurance: Ernst & Young Accountants LLP (EY)

UN Sustainable Development Goals

• SDG 9 (Industry, Innovation and Infrastructure)
• SDG 7 (Affordable and Clean Energy)
• SDG 3 (Good Health and Well-being)
• SDG 11 (Sustainable Cities and Communities)
• SDG 8 (Decent Work and Economic Growth)
• SDG 12 (Responsible Consumption and Production)

Approximately 68% of turnover linked to these SDGs

Sustainable Products & Innovation

• Alvium technology
• UNIXX belt maker
• Gocator 5500 sensors
• Robotic patching solution
• Symphony secure intercom cloud platform
• CEDD AGL technology
• Offshore wind farm cable technology

Awards & Recognition

• PSO certification