Climate Change Data

Environmental Metrics

ESG Focus Areas

• Cleaner, Safer Vehicles
• Culture of Innovation
• Responsible Operations

Environmental Achievements

• Improved environmental metrics through increased data collection and automation; CDP Climate Change score of B.
• Total GHG emissions decreased by almost 65,000 tonnes (5%) due to decreased production and energy-saving initiatives.
• Reduced Scope 3 emissions in several categories (Purchased Goods and Services, Capital Goods, Business Travel, etc.).
• Installed solar panels at Pune (India) site.

Social Achievements

• Piloted an employee engagement survey with positive feedback on inclusion and equity.
• Published Garrett’s Diversity and Inclusion Policy and set 2025 gender diversity ambition.
• Delivered approximately 43,000 hours of training.
• Reduced Lost Work Case Incident Rate (LWCIR) and Total Case Incident Rate (TCIR).
• Offered 100 internships in 10 countries.
• Supported STEM education through various programs and competitions.

Governance Achievements

• Implemented Integrity & Compliance (I&C) program meeting SOX, FCPA, and UK Bribery Act standards.
• Completed 100% of Integrity & Compliance training courses.
• Conducted a health, safety, and environment (HS&E) online self-assessment questionnaire with 160 top direct suppliers.
• Carried out virtual Gemba Walks to assess COVID-19 safety measures with over 90 suppliers.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic significantly impacted 2020 environmental metrics (decreased production affecting carbon, energy, and waste; increased water usage due to sanitization; reduced business travel).
• Increased total waste volume despite decreased production due to increased hazardous waste (resolved water issue at one site).
• Calculating Scope 3 emissions to provide a comprehensive picture of the carbon footprint.

Mitigation Strategies

• Implemented energy-saving capital expenditures, low-cost-no-cost process improvements, and digitization strategies.
• Streamlined waste data collection and reporting process.
• Exploring more waste-effective packaging solutions.
• Working to improve the assurance of material Scope 3 categories (one new category per year).

Supply Chain Management

Supplier Audits: 160 top direct suppliers participated in HS&E self-assessment questionnaire; over 90 suppliers had virtual Gemba Walks.

Responsible Procurement

• Supplier Code of Conduct
• Conflict Minerals Reporting Template (CMRT)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB

Certifications: ISO 14001, ISO 9001:2015, IATF 16949:2016

Third-party Assurance: Lloyd’s Register Quality Assurance Limited

Sustainable Products & Innovation

• E-Turbo
• Electric air compressor for fuel cell vehicles
• Model-Based Predictive Control (MPC) software

Environmental Metrics

ESG Focus Areas

• Cleaner, more efficient vehicles
• Culture of innovation
• Operating responsibly

Environmental Achievements

• Maintained a B score on CDP Climate Change and received an A- CDP Supplier Engagement Rating for climate change.
• Earned a silver medal from EcoVadis, placing in the top 5% of the auto industry.
• Improved environmental metrics through increased data collection and automation.
• 100% of manufacturing sites were ISO 14001 certified.

Social Achievements

• Grew training hours by 34% reaching 66,000 hours (17 hours per employee).
• Increased female employee representation to 21.8% in 2021 (progress toward 25% by 2025).
• Grew STEM initiatives.
• Recognized as an employer of choice in Slovakia and the U.S. in 2021.
• 100% of employees completed training on the Garrett Code of Business Conduct.

Governance Achievements

• Established a Senior Executive Sustainability Committee in 2019.
• Board of Directors approved the WeCare4 sustainability framework in 2020.
• New section on Labor and Employee Relations added to the Code of Business Conduct.
• More than 20,000 compliance courses completed, with 14,000 training hours.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic.
• Calculating and improving Scope 3 emissions.
• Maintaining and improving waste diversion rates.

Mitigation Strategies

• Implemented virtual audits for HSE.
• Continuous improvement of Scope 3 emissions calculation methodology.
• Undertook several actions to improve waste and effluent management, including inventory management, improved procedures, and strengthened KPIs.

Supply Chain Management

Supplier Audits: >95% of direct spend covered by sustainability assessment questionnaire

Responsible Procurement

• Supplier Code of Conduct
• Conflict Minerals Reporting Template (CMRT)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI (Global Reporting Initiative)

Certifications: ISO 14001, ISO 45001, ISO 50001

Third-party Assurance: Lloyd’s Register Quality Assurance (LRQA)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 11 (Sustainable Cities and Communities)
• Goal 13 (Climate Action)
• Goal 8 (Decent Work and Economic Growth)

Contribution to sustainable mobility, STEM education, community outreach, and responsible business practices.

Sustainable Products & Innovation

• Electric Turbo (E-Turbo)
• Electric Compressor (E-Compressor)
• Air compressor for hydrogen fuel cell electric vehicles

Awards & Recognition

• PACE Award for E-Turbo

Environmental Metrics

ESG Focus Areas

• Clean Mobility
• Culture of Innovation
• Responsible Operations

Environmental Achievements

• Reduced Scope 1 and 2 carbon emissions by 9% compared to 2021
• Reduced absolute energy consumption by 4.4% in 2022 compared to 2021
• 76.6% of waste was recycled
• Implemented twelve energy efficiency projects in 2022, saving 463 tons of CO2 annually

Social Achievements

• Increased total training hours by 18% (77,992 hours) in 2022 compared to 2021
• Launched WeCare4 Network across nine Garrett sites, increasing employee and community engagement
• Welcomed 213 interns in 2022

Governance Achievements

• Achieved EcoVadis Gold rating (top 2% among auto suppliers)
• Maintained CDP climate change B score and earned a C rating for CDP water security
• Over 99% of permanent employees completed Code of Business Conduct training
• Strengthened ESG governance at board level with updated committee charters

Climate Goals & Targets

Environmental Challenges

• Achieving 25% female representation by 2025 (reached 21.8% in 2022)
• Global supply chain disruptions

Mitigation Strategies

• Continued focus on improving energy efficiency across global footprint
• Ensured supply continuity to customers despite supply chain challenges
• Implemented a hybrid workplace policy to improve work-life balance

Supply Chain Management

Supplier Audits: >95% of direct material spend covered by ESG performance assessment questionnaire

Responsible Procurement

• Garrett Supplier Code of Conduct
• Annual ESG performance assessment questionnaire

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 45001, ISO 14001, ISO 50001, IATF 16949:2016, ISO 9001:2015

Third-party Assurance: Lloyd’s Register Quality Assurance (LRQA)

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)
• Goal 8 (Decent work and economic growth)

Garrett's focus on emission-reduction and zero-emission technologies, energy efficiency improvements, responsible operations, and investment in employee development contribute to these goals.

Sustainable Products & Innovation

• E-Turbo
• E-Compressor
• Hydrogen fuel cell compressor

Awards & Recognition

• EcoVadis Gold rating
• CDP Climate Change B score
• CDP water security C rating
• CDP Supplier Engagement Rating A-

Environmental Metrics

ESG Focus Areas

• Emission Reduction & Energy Efficiency
• Culture of Innovation
• Operating Responsibly

Environmental Achievements

• 7.7% decrease in energy consumption in 2023 compared to 2022
• 3.3% reduction in Scope 1 & 2 GHG emissions in 2023 compared to 2022
• 12.3% decrease in water withdrawal across facilities in 2023 compared to 2022

Social Achievements

• 1% increase in women in the workforce, reaching 22.8%
• Launched three new Employee Resource Groups (ERGs) globally
• 67% reduction in Total Reportable Case Incident Rate compared to the previous year

Governance Achievements

• 100% of employees received regular performance reviews
• 100% of Garrett manufacturing sites ISO 50001 and ISO 14001 certified
• 100% of Garrett manufacturing sites ISO 45001 certified

Climate Goals & Targets

Environmental Challenges

• Increasing global supply chain challenges
• Talent availability influencing women's representation goals
• Maintaining compliance with evolving chemical management regulations worldwide

Mitigation Strategies

• Consistent supply to customers despite supply chain challenges
• Utilizing diverse recruitment channels and inclusive job advertisements
• Integrating product stewardship across the value chain and engaging with stakeholders to develop risk management plans

Supply Chain Management

Supplier Audits: ESG assessment of direct material suppliers covers 99% of spend

Responsible Procurement

• Garrett Supplier Code of Conduct
• Sustainable Procurement Policy

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, ISO 50001, ISO 45001

Third-party Assurance: Lloyd’s Register Quality Assurance (LRQA)

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 11 (Sustainable cities and communities)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)
• Goal 8 (Decent work and economic growth)

Garrett's products and initiatives contribute to these goals through emission reduction, energy efficiency, responsible resource management, and community engagement.

Sustainable Products & Innovation

• E-Turbo
• E-Compressor
• Hydrogen Fuel Cell Compressors
• E-Powertrain
• E-Cooling systems