Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental concerns
• Social issues
• Respect for human rights
• Employee concerns
• Combating bribery and corruption

Environmental Achievements

• Implemented energy efficiency measures in procurement process in Canada (new 800-metric ton press with energy recovery system and LED lighting)
• Installed heat exchanger at Suzhou location in China to utilize waste heat from air compressors for water heating
• Switched Oberkirch and Czechia locations to green electricity purchasing from 2022
• Resolved to only order electric vehicles for company cars and fleet cars from 2022
• Reduced energy consumption by up to 40 percent on weekends through automatic shutdown management for presses and welding units

Social Achievements

• Offered online formats on back exercises, Pilates, and functional training to maintain employee wellbeing during pandemic
• Organized online events on paid sick leave for children, care for family caregivers, and new approaches in medical care in cooperation with AOK health insurance fund
• Continued to refine hygiene concepts and implemented a systematic testing strategy to protect against COVID infection
• Supported vaccination with consulting and vaccination activities
• Implemented 2 automation projects improving production management and energy aspects

Governance Achievements

• Refined Code of Conduct in close coordination with the Works Council
• Expanded CMS to include a Compliance Committee, a revised compliance risk assessment, and fundamental documentation and guidelines
• Developed a detailed questionnaire for a more objective assessment of compliance risk at national companies and departments
• Provided e-learning courses with updated content at all locations

Climate Goals & Targets

Environmental Challenges

• Unsatisfactory earnings power of the German location due to weakness in the automotive industry and supply chain shortages
• Relocation of customer production to Eastern Europe due to high wage levels in Germany
• High employee tensions in the second year of the coronavirus pandemic leading to higher staff turnover

Mitigation Strategies

• Implemented reduced working hours and offered employees the chance to acquire new skills in IT
• Implemented headcount adjustments through socially acceptable agreements to avoid layoffs
• Implemented a product line-oriented matrix organization in production to leverage synergies, improve process quality, increase flexibility, and speed up decision-making

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Integrity check for new suppliers regarding sustainability requirements
• Annual review of existing suppliers
• Ad hoc measures based on new findings

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, ISO 50001

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

• Environment
• Social
• Governance

Environmental Achievements

• Reduced greenhouse gas emissions significantly by switching to green power in Germany and Czechia and introducing a gas tariff with a surcharge for purchasing certificates in Canada.
• Implemented automatic shutdown management for presses and welding units, reducing energy consumption by up to 40% on weekends.
• Replaced older air compressors with new, more energy-efficient models.
• Converted conventional lighting to LED lighting at various locations.
• Connected presses in Oberkirch directly to a cooling tower, enabling automatic shutdown when not in use.

Social Achievements

• Substantial decrease in accident frequency at almost all locations.
• Launched a talent program supporting 16 individuals across various specialist areas.
• Developed a canon of PWO values and implemented eight management principles internationally.
• Introduced a personnel development program for managers in production at the German location.
• Launched PWO Campus 2022, offering events and training on various PWO-relevant topics.

Governance Achievements

• Implemented a detailed questionnaire to identify and assess non-financial risks.
• Closer monitoring of supply chain risks.
• Interlinked the Compliance Management System (CMS) and the Risk Management System (RMS) more closely.
• Revised the whistleblower system and prepared a new PWO Group “Whistleblowing” guideline.
• Adopted a guideline on handling trade secrets.

Climate Goals & Targets

Environmental Challenges

• Unsatisfactory earnings power of the German location due to high energy and staff costs.
• Limited availability of green steel.
• Difficulty in gathering real data on Scope 3 emissions from suppliers.

Mitigation Strategies

• Successfully concluded a supplemental collective bargaining agreement for the Oberkirch location, ensuring productivity will not decrease further.
• Carrying out production tests with green steel.
• Intending to gather real data on Scope 3 emissions from suppliers in the 2023 fiscal year.

Supply Chain Management

Responsible Procurement

• PWO Code of Conduct
• PWO Business Partner Code
• Integrity check for new suppliers regarding sustainability requirements
• Annual review of existing suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Global Reporting Initiative (GRI)

Certifications: DIN ISO 14001, DIN ISO 50001:2018

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced CO2e emissions by 20.0 percent year-on-year and 51.0 percent compared to the 2019 baseline, exceeding the SBTi target of a 46.2 percent reduction by 2030.
• Significant reduction in gas consumption due to precise control of metalworking fluids and strict heating management.
• Installation of an oil-water separator in Canada, leading to a significant reduction in waste.

Social Achievements

• Launched a global talent program in Q1 2023.
• Conducted a global employee survey to assess values and leadership principles.
• Continued PWO Campus with 4 series of events per quarter in Germany.
• Increased the number of apprentices in Mexico.
• 40 percent of promotions in Mexico were women.

Governance Achievements

• Implemented a sustainable procurement and business partner compliance process throughout the Group.
• Adapted the whistleblower system to comply with European legislation.
• Initiated a process to select an organization to certify PWO AG’s CMS, aiming for completion in 2024.
• Used a detailed questionnaire at all PWO locations to assess compliance risks.

Climate Goals & Targets

Environmental Challenges

• Slight year-on-year increase in greenhouse gas emissions anticipated due to growth and inability to continue individual measures from 2022.
• Limited availability of green steel.
• Different operating processes for waste disposal across locations.

Mitigation Strategies

• Implemented various measures to enhance energy efficiency and reduce GHG emissions (e.g., using green power in Czechia, precise control of metalworking fluids, strict heating management).
• Signed a partnering agreement with Salzgitter Mannesmann Stahlservice GmbH to procure green steel from 2026.
• Implemented an oil-water separator in Canada to reduce waste.

Supply Chain Management

Supplier Audits: Integrity checks for new suppliers; review of existing suppliers.

Responsible Procurement

• PWO Business Partner Code; sustainable procurement and business partner compliance process.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products; procurement of green steel.

Reporting Standards

Frameworks Used: GRI, SBTi, UN Global Compact, EU Taxonomy

Certifications: DIN ISO 14001 (most locations), DIN ISO 50001:2018 and DIN ISO 14001:2015 (Oberkirch)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Lightweight components for electric vehicles; green steel procurement.

Awards & Recognition

• Award for best industrial mechanic; Bruno Lotter Prize for best thesis.