Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• 16% reduction in Scope 1+2 emissions compared to 2022 (0.96 kgCO2e/m2 vs 1.14 kgCO2e/m2)
• Germany production site now uses 100% renewable electricity
• Hungary cutting plant receives over two-thirds of its electricity from renewable sources
• Leon (Mexico) plant uses on-site photovoltaic power generation
• 10.4% reduction in water consumption
• 19.6% of chemicals used comprised of natural components or with content processed from renewable sources (+12%)
• 13965 kg of biopolymers (+7%) recycled into Recycled Tan substrate
• 1626 metric tons of waste recycled (+19%)

Social Achievements

• 41% of management positions held by women
• 2.8% absenteeism rate (down from 4.1% in 2022)
• Total recordable injury rate (TRIR) 85% lower than the industry average
• 1403 idea cards submitted through Global Innovation Dashboard (+22%), 37% implemented
• Global Recognition Award program instituted

Governance Achievements

• All Pangea sites scored a “B” rating for the NQC Minimum Scope Rating section, above the leather industry average and above the automotive supplier industrial segment
• All post-tanning and finishing operations received LWG Gold certification
• Nigel (RSA) facility awarded EcoVadis Gold level Sustainability Rating (94th percentile)

Climate Goals & Targets

Environmental Challenges

• Lack of standardized environmental impact data across the customer base
• Difficulty in quantifying Scope 3 emissions due to data limitations and supplier transparency
• Complexity in managing the end-of-life of laminated leather products
• Need to address deforestation risks in the cattle farming supply chain

Mitigation Strategies

• Advocating for a unified industry approach to communicating product environmental impact data
• Developing partnerships to leverage new technologies and circular solutions for waste streams
• Engaging suppliers to minimize the cost and carbon footprint of their products
• Communicating with customers about material specifications to drive complexity in leather making
• Expanding deforestation-free requirements to new suppliers and utilizing certifications

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable Procurement Policy
• Supplier Code of Conduct
• Deforestation-free sourcing requirements

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes related to deforestation and emissions

Opportunities

• Development of energy-efficient products and processes

Reporting Standards

Frameworks Used: GRI, CDP, UN Global Compact, GHG Protocol

Certifications: LWG Gold, EcoVadis Gold (Nigel, RSA), NQC

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 8 (Decent Work and Economic Growth)
• Goal 5 (Gender Equality)
• Goal 13 (Climate Action)

Pangea's initiatives contribute to these goals through renewable energy use, waste reduction, fair labor practices, gender equality in the workplace, and emissions reduction.

Sustainable Products & Innovation

• Ecoda, Terova, Vendura, and Nevila leathers

Awards & Recognition

• Toyota Motor North America’s “Excellent Technology & Development Award”
• Guanajuato State Award for Labor Merit (Leon, Mexico)