Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable Development
• Human Capital
• Environmental Protection
• Health and Safety
• Diversity and Inclusion

Environmental Achievements

• Implemented waste reuse and recycling programs at various sites (e.g., St. Marys, Holytown).
• Reduced energy consumption by approximately 300 MWh/year at the Holytown facility.
• Received Clean Energy Certificate from the Mexican Environment Agency for the Juarez site.
• Implemented green technologies for heating at Husum and Hittisau sites.
• 50% of sites are ISO 14001 certified.

Social Achievements

• Launched Open Manager and Open Expert programs for skills development.
• Implemented safety awareness campaigns (e.g., Saint-Bonnet).
• Introduced cross-audits for safety best practices.
• Implemented the DuPont STOP™ method for safety observation.
• Launched Mersen Mentoring Program for experience sharing.

Governance Achievements

• Implemented a Code of Ethics for all employees and the Board of Directors.
• 44% women directors, 55% independent directors (AFEB-MEDEF Code compliance).

Climate Goals & Targets

Environmental Challenges

• Reducing the environmental impact of industrial facilities.
• Improving and safeguarding suppliers’ social and environmental performance.
• Consolidating the culture of health and safety across the Group.

Mitigation Strategies

• Implemented processes to reduce the environmental footprint of its sites and develop innovative and sustainable products.
• Evaluated CSR practices of strategic suppliers.
• Implemented a health and safety management system at every site.

Supply Chain Management

Responsible Procurement

• Includes environmental criteria in its purchasing processes.
• Works hand-in-hand with local partners to reduce transportation costs and greenhouse gas emissions.

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Solutions for renewable energies (solar, wind, hydroelectric, energy storage).
• Solutions for clean transportation.
• Energy-efficient solutions for electronics manufacturers.
• Solutions for high temperature process industry (insulation, heat recovery).

Awards & Recognition

• Safety Award from the National Safety Committee (Bommasandra facility).

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Supply Chain Sustainability
• Health & Safety
• Employee Well-being

Environmental Achievements

• Increased waste recycling rate by 16 percentage points to 62.4%
• Reduced CO2 emissions intensity by 13%

Social Achievements

• 91% of employees proud to be part of the Group (2021 survey)
• Increased proportion of women engineers and managers from 22.2% (2019) to 24.4% (2021)
• 98% of site managers recruited locally
• LTIR (Lost Time Injury Rate) of 1.62 (for all employees, temporary workers, and subcontractors); 1.06 for Mersen employees only
• SIR (Severity Injury Rate) of 47

Governance Achievements

• Appointed a director responsible for monitoring CSR issues
• Implemented a policy to increase the proportion of women in management bodies, aiming for 25% by 2025
• Completed CSR roadmap for 2018-2021

Climate Goals & Targets

Environmental Challenges

• Geopolitical and macroeconomic instability
• Management of expertise
• Risks relating to the electric vehicle market
• Ineffective management of technological ruptures and developments
• Delayed rollout of digital tools and/or product offering
• Digital cyberattack
• Inadequate quality and customer service
• Ineffective management of industrial projects and integration of newly acquired companies
• Dependence on certain production sites and/or certain suppliers
• Changes in profitability in certain product lines
• Shortages of human capital (diversity, rapidly developing areas)
• Environmental damage
• Major claims and disputes

Mitigation Strategies

• Developing in forward-looking growth markets (sustainable development markets)
• Measures to adapt cost structure and speed up industrial reorganization projects
• Sales Excellence program
• Solid financial structure and substantial liquidity
• Dedicated organizational structure to manage talent and expertise risk (specialists unit, succession plans, career management policy, communication measures, long-term incentive plans)
• Dedicated internal “Electric Vehicles Committee”, investment in dedicated teams and skills, IATF certification, partnerships with automotive sector specialists
• Technological watch, synergies between R&D and sales teams, increased capital expenditure and R&D budgets, closer ties with strategic customers, improved simulation tools, partnerships with universities, digitization of customer offer, broader and more comprehensive product offering, acquisition policy
• Digital roadmap with significant investments in tools (CRM software)
• Overall IT security policy, regular updates, specific IT risk map, internal audits, awareness-raising sessions, external service providers, IT governance projects, strengthened IT teams
• Management and operational excellence policy, hiring of automotive quality specialists, legal coverage in contracts, quality management and dispute prevention tools
• Dedicated groups supervised by a governance body, monthly tracking by Operational Excellence Department, specific monitoring process for Columbia project, specialists recruitment, due diligences, tailored integration plans
• Business continuity plans, alternative production solutions, second sourcing for strategic suppliers, outsourcing certain processes
• Measures to adapt cost structure (productivity plans, excellence programs, restructuring plans), Sales Excellence program, positioning in growth markets, action plans to improve profitability
• Gender diversity policy, inclusion of diversity criteria in recruitment, strengthened support functions, expansion of regional liaison officers network

Supply Chain Management

Supplier Audits: 45% of suppliers returned signed procurement charter (2021); 440 out of 1000 suppliers returned completed CSR questionnaire (2021)

Responsible Procurement

• Procurement charter for a sustainable supply chain
• Third-party corruption risk assessment procedure
• CSR questionnaire with detailed self-assessment grid
• Annual update of conflict minerals compliance statements

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Third-party Assurance: EcoVadis (Gold), MSCI (A), CDP (C)

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)
• Goal 10 (Reduced inequalities)
• Goal 5 (Gender equality)
• Goal 17 (Partnerships for the goals)

Mersen's products and solutions contribute to renewable energy, energy efficiency, sustainable transportation, and responsible manufacturing processes. The company's commitment to diversity and inclusion, employee well-being, and ethical business practices also align with several SDGs.

Sustainable Products & Innovation

• Insulation felt
• Modulostar fuse holder
• Eco&Flex Synthesis Unit

Awards & Recognition

• EcoVadis Gold Medal

Environmental Metrics

ESG Focus Areas

• Greenhouse gas emissions reduction
• Workforce diversity

Environmental Achievements

• Significant reduction in the intensity of greenhouse gas emissions

Social Achievements

• Higher proportion of women engineers and managers

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Higher cost of raw materials, energy and labor
• Supply chain disruptions (implied by increased inventories to secure supply chain)

Mitigation Strategies

• Price increases
• Productivity gains
• Increased raw material and component inventories
• Operational excellence plans

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

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

Environmental Achievements

• Reduced carbon emissions by 26% compared with 2022
• 73% of total electricity consumption from renewable sources
• 70% of waste recycled

Social Achievements

• Proportion of women in engineering and managerial positions rose to more than 26%
• 75% of sales were EU Green Taxonomy eligible
• 89% of employees satisfied with working for Mersen

Governance Achievements

• Successfully completed a €100 million capital increase
• Board of Directors amended Internal Rules to clarify duties regarding CSR issues, particularly climate change
• Executive compensation linked to ESG (partially)

Climate Goals & Targets

Environmental Challenges

• Geopolitical and macroeconomic instability
• Risks related to strategy to penetrate the electric vehicle market
• Product quality, safety and regulation
• Risks related to expansion in the SiC market
• Dependence on certain production sites and/or suppliers
• Competitive pressure and lower profitability in certain product lines
• Risks related to ineffective management of technological development
• Difficulty attracting and retaining experts
• IT systems failure and cyberattacks
• Ineffective integration of newly acquired companies
• Human capital shortages for the 2027 growth plan
• Delayed rollout of environmental and climate policy
• Major disputes and non-compliance issues

Mitigation Strategies

• Diversified markets and geographic presence
• Dedicated internal "Electric Vehicles Committee"
• Operational Excellence Department, continuous improvement program
• Multi-year contracts with certain players in the semiconductor market
• Business continuity plans
• Sales Excellence program
• Technology watch, R&D investments
• Expert community, succession planning, employer brand measures
• IT security policy, redundancy systems, training
• Due diligence procedures, integration plan
• Regional liaison officers, employer brand, succession planning
• Ambitious environmental policy, monitoring of operating permits
• Quality program, Operational Excellence Department, legal department support, civil liability insurance

Supply Chain Management

Supplier Audits: 19 audits conducted in 2023

Responsible Procurement

• Purchasing Charter for a Sustainable Supply Chain
• CSR questionnaire with self-assessment grid
• Conflict Minerals Reporting Templates

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001

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)

Mersen's initiatives contribute to these goals through renewable energy use, sustainable product development, waste reduction, and GHG emission reduction.

Sustainable Products & Innovation

• Eco&Flex Synthesis Unit
• Insulation felt for the semiconductor industry
• Modulostar fuse holder
• New grades of brushes for wind generators and rail collector strips
• MERSEN DustCollector systems