Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Social Responsibility
• Employee Development
• Innovation

Environmental Achievements

• Focus on sustainable mobility solutions, electrification, and emission reduction
• Investigation into second life use of batteries for energy storage
• Development of VDL-E-Power technology for electric mobility
• Work on hybrid energy systems, solar panels, and wind turbine equipment

Social Achievements

• Social involvement in communities through support of local events and associations
• Support of social projects in care and welfare through the VDL Foundation
• Focus on employee growth and development
• Promotion of technology careers for young people

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

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

• VDL-E-Power technology

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate change
• Energy
• Circularity
• Health & safety
• Good employer practices
• Human rights in the chain
• Training & education
• Equal treatment & belonging
• Business ethics
• Social commitment

Environmental Achievements

• Construction of an energy-neutral bus factory in Roeselare, Belgium
• Relocation of VD Leegte Metaal to new sustainable premises in Hapert
• Increased number of green roofs and solar panel installations
• Promotion of electric company cars and vehicles
• Assessment of energy consumption in all investments from 2023 onwards
• Letter of intent signed with ASML to achieve a 45% carbon emissions reduction by 2030
• Development of a local energy hub at Kempisch Bedrijven Park in Hapert
• Development and manufacturing of a hydrogen truck for Toyota
• Development of an electrolyser for hydrogen production
• Development of machines for breeding and growing insects as an alternative protein
• Development and production of the world's first fully electric convertible
• Development of mobile energy storage systems
• Assembly of battery packs for vehicles
• Development of a production technology to recycle bus side walls into bulkhead plates

Social Achievements

• Launched Samen Sterk program for employee well-being and financial fitness
• Implemented De Nieuwe Gerechtsdeurwaarder initiative to assist employees with debt issues
• Offered preventive medical examinations to employees
• Provided training and development opportunities for employees, including apprenticeships and work placements
• Launched VDL Triple T Academy for personal development of MBO students
• Launched an in-house training program for work planners
• Expanded training curriculum to include language courses, welding, forklift training, sales training, leadership courses, and e-learning courses
• Organized VDL on Tour program to engage young people in engineering
• Supported student teams with projects
• Nominated employees for the Noordhof Prize
• Main sponsor of PSV Eindhoven, collaborating on social initiatives to reduce debt in the Brainport region
• Established the Partnerfonds Brainport Eindhoven to address social issues
• Participated in Brainport voor Elkaar initiative to improve social conditions in the region
• VDL Foundation donated €30,000 to Villa Pardoes and supported other social organizations

Governance Achievements

• Prepared for the implementation of the Corporate Sustainability Reporting Directive (CSRD)
• Conducted a dual materiality analysis to assess ESG impacts
• Improved CDP (Carbon Disclosure Project) score
• Implemented a Code of Conduct and Whistleblower Scheme
• Maintained close collaboration with works councils and trade unions

Climate Goals & Targets

Environmental Challenges

• Forced redundancies at VDL Nedcar due to lack of new vehicle projects
• Operational headwinds in the Buses and Coaches division due to supply chain disruptions and high development costs
• Market demand stagnation in certain sectors
• Shortages of raw materials and components
• High component price increases
• Delays in construction and public space projects due to nitrogen emission issues and bad weather
• Difficulties in obtaining permits and grid connections for infrastructure projects
• Declining market demand for trucks and trailers
• Downturn in customer demand in the last two quarters for VDL Parree
• Challenges in the supply of chassis for VDL Translift
• Volatile and uncertain global market for VDL Container Systems
• Lagging investments in the oil and gas market due to uncertainties around the war in Ukraine
• Loss of sales for scrubbers in the marine industry
• Slow market development for insect farming
• Decline in the order book in the food industry during the second half of 2023
• Relatively low growth in the tobacco industry due to overcapacity
• Tight labor market and difficulty in recruiting and retaining skilled workers
• Current energy scarcity

Mitigation Strategies

• Switched to a single-shift operation at VDL Nedcar and implemented a social plan
• Implemented inventive solutions to counter high component price increases
• Diversification and broadening of activities
• Active pursuit of new customer acquisition
• Timely destocking
• Ensuring adequate stock levels
• Monitoring key suppliers
• Passing price increases on to customers
• Investment in innovation and development
• Collaboration with research and education institutions
• Investment in training and development opportunities for employees
• Active recruitment through in-house recruiters and cooperation with employment agencies
• Lobbying various governments and collaborating with energy companies for green energy supply
• Initiating own-energy initiatives
• Investment in replacement of outdated energy network
• Cyber security awareness training for staff
• Continuous monitoring of IT systems for attacks
• Proper backup strategy of IT systems with move to a hybrid IT environment in the cloud
• Optimization of security level for IT systems and application landscape
• Searching for new users for VDL Nedcar facilities
• Initiating new work operations at VDL Nedcar
• Integration of new guidelines into quality control systems
• Periodic audits by governments and/or customers
• Timely action to reduce obsolete stock volume
• Modifying products to ensure compliance with environmental legislation
• Compliance with quality requirements and controls
• Extensive product testing before delivery
• Advocacy and interest with government agencies
• Membership in employer associations for representation during CLA negotiations
• Excluding doing business with high-risk countries
• Risk analysis for countries subject to trade sanctions
• Cooperation with Triple A banks
• Ensuring adequate equity and long-term financing facilities
• Debtor insurance and active internal credit control policy
• Active cash-flow monitoring

Supply Chain Management

Responsible Procurement

• Focus on local supply chains in the Netherlands and Western Europe
• Test project to assess human rights risks in the supply chain

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: CSRD

Certifications: ISO 90001, 13485, 14001, IATF 16949

Third-party Assurance: Govers Accountants

UN Sustainable Development Goals

• SDG 8: Decent work and economic growth
• SDG 9: Industry, innovation and infrastructure
• SDG 12: Responsible consumption and production
• SDG 13: Climate action

VDL Groep's sustainability policy focuses on these SDGs based on its analysis of where it can make the greatest impact.

Sustainable Products & Innovation

• Electric buses
• Hydrogen truck
• Electrolyzer
• Machines for insect farming
• Fully electric convertible
• Mobile energy storage systems
• Battery packs for vehicles
• Sustainable water bottles

Awards & Recognition

• J.D. Power Awards for VDL Nedcar (best initial quality and appeal for MINI Cooper, best appeal for MINI Countryman, best car factory in Europe and Africa)
• Busworld Design Award