Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced electrical use through various initiatives (specific percentage not quantified but mentioned as goals achieved)
• Reduced Styrofoam usage by ~22 tons per year
• Implemented a new manufacturing facility expansion utilizing an underground storm water retention system to reduce storm water discharge
• Reduced irrigation water consumption by approximately 25% using irrigation software control system
• Added 10 electric-vehicle charging stations in 2016
• All new and replacement facility roofs utilize white materials to reflect sunlight and reduce the air conditioning energy consumption by approximately 20%
• Utilizes software-managed and occupancy-sensor-controlled lighting throughout all facilities
• Captures excess heat from the compressed air system and uses it to pre-heat/temper water used in the production process
• Uses excess warm water from the production process to temper the boiler/snowmelt water, reducing boiler energy consumption
• Recycles more solid waste than it sends to the landfill
• Constructed three distinct wetlands and wildlife habitat areas totaling 3.25 acres

Social Achievements

• Maintained workplace injury rates well below the industry average
• Received a regional “Top Workplaces Award” for six consecutive years
• Ranked 9th among large companies and 1st in the manufacturing category in the Top Workplaces Award
• Financially supported a wide variety of local community organizations
• Operates “Community Share,” an employee-run community service and financial support program
• Recognized by multiple OEM customers for actively developing and using minority- and woman-owned Tier II suppliers
• Recognized by Toyota Motor Engineering & Manufacturing North America, Inc. for ongoing efforts to increase supplier relationships with local minority business enterprises (four years in a row)
• Recognized by FCA (Fiat Chrysler Automobiles) for exceeding their targets set for Diversity sourcing

Governance Achievements

• Operates in accordance with all applicable laws and seeks adherence with international human rights conventions
• Formal Conflict Minerals Policy and membership in the Conflict Free Sourcing Initiative (CFSI)
• Formal Hiring and Supplier Diversity Policies
• Compliance with diversity programs developed and administered by all customers
• Ongoing and thorough audits of facilities and manufacturing process to ensure continued excellence

Climate Goals & Targets

Environmental Challenges

• Energy sustainability and global climate change
• Reducing greenhouse gas emissions from freight transportation
• Reducing landfill waste
• Precious metals refining determined there is no cost recovery value in spent abrasive media

Mitigation Strategies

• Improving energy efficiency where practicable
• Utilizing energy-efficient alternatives for equipment
• Using less energy in the operation of manufacturing plants
• Participating in the local Energy Smart Program
• Switching key manufacturing components from electrical heating to natural gas
• Recycling abrasive materials from sandblasting operations
• Switching from Styrofoam to recyclable cardboard glass crate inserts
• Reducing air freight transportation and increasing ocean freight transportation
• Reducing truck freight transportation of manufacturing solvents and recyclable materials
• Recycling spent cloth from the manufacturing process

Supply Chain Management

Responsible Procurement

• Expecting suppliers to support Gentex sustainability initiatives

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO 14001

Certifications: ISO 14001

Sustainable Products & Innovation

• Green mirror initiative (cadmium-free digital light sensors, lead-free reflective coatings, lead-free wire harnesses and soldering methods)

Awards & Recognition

• Subaru recognition for Environmental Sustainability and Environmental Stewardship (2015)
• Toyota Supplier Diversity Special Recognition Award for MBE Improvement (2016)
• FCA recognition for exceeding diversity sourcing targets (2016)
• Automotive News Pace Award Finalist
• Mitsuba Exceptional Support Award
• Excellent Supplier Diversity Award
• Toyota Quality Recognition Award
• GM Supplier of the Year (18-time winner)
• Mazda Zero Defect Award
• Volvo Cars Quality Excellence Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion
• Sustainability
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Reduced Scope 2 emissions
• Reduced natural gas usage from pre-pandemic levels
• Installed 7 new e-charging stations
• Launched new invoice automation software, reducing paper invoices by over 150,000 annually
• Converted all compression air systems to oil-free systems
• Eliminated 340 lbs. of VOC emissions from chemical production
• Rerouted water from drains to RO tanks, saving 1,108,490 gallons of water
• VOC mitigation system prevented 724.28 lbs of VOCs
• Gentex charging stations helped avoid 37,953 kg in greenhouse gas emissions
• Reused 352 5-gallon plastic buckets
• Recycled 66.25% of solid waste

Social Achievements

• Launched Limited English Proficiency Program for Spanish-speaking employees
• Received the 2020 Social Justice Award from the City of Holland
• Established a Diversity, Equity, and Inclusion (DE&I) Council
• Invested in the New Community Transformation Fund
• Implemented new employee onboarding orientation with DEI training
• Opened a 10,000 square foot Wellness Center
• Partnered with Zeeland Recreation for employee fitness access
• Launched Gentex Cares+ Employee Assistance Program (EAP)
• Implemented a Case Management Program
• Launched Smart Health well-being program with 66% employee participation
• Implemented a Diabetes Management program
• Received gold level recognition by the America Heart Association Workplace Health Achievement Index
• Community Share raised $250,000 in employee and corporate donations

Governance Achievements

• Updated Nominating and Corporate Governance Committee Charter to include oversight of ESG and sustainability efforts
• Adopted a Code of Business Conduct and Ethics
• Established an Open-Door Policy for reporting illegal or unethical behavior
• Implemented procedures for confidential, anonymous reporting to the Audit Committee

Climate Goals & Targets

Environmental Challenges

• Energy use and production contributing to greenhouse gas emissions
• Supply chain disruptions
• Need to collect sustainability data through the supply chain to include Scope 3 emissions

Mitigation Strategies

• Developing a renewable energy roadmap including RECs, onsite renewable infrastructure, and PPAs
• Implementing energy efficiency projects (lighting, HVAC improvements, compressed air leak audits, building control systems)
• Working towards carbon neutrality by at least 2049
• Investing in security team, equipment, and hardware
• Implementing a safety management system and working towards ISO 45001 certification

Supply Chain Management

Responsible Procurement

• Tier II Supplier Reporting Initiative
• Conflict Minerals Policy

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Green mirror initiative (cadmium-free digital light sensors, lead-free reflective coatings, lead-free wire harnesses and soldering methods)

Awards & Recognition

• 2020 Social Justice Award from the City of Holland
• Toyota Supplier Diversity Award
• Nissan Supplier Diversity Award
• 98Ki Honda Quality and Delivery Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Replaced all exterior lighting on the Michigan campus with LED fixtures, resulting in less energy consumption.
• Maintained 30 electric vehicle charging stations on its corporate campus, avoiding 69,581 kg in greenhouse gas emissions.
• Installed 5 new EV charging stations at the Erlenbach office.
• Transitioned to 100% renewable energy at the James St. manufacturing facility.
• Added a scrubber unit to manufacturing operations, reducing VOC air emissions by 4,493.69 lbs (2.25 tons).

Social Achievements

• Launched the Limited English Proficiency (LEP) program, employing over 200 people.
• Announced plans to open a childcare center in 2024.
• Leased a building in Grand Rapids to expand manufacturing and provide greater job access.
• Raised $200,000 for Community Share through employee and corporate donations.
• Established the Gentex Foundation for charitable giving.

Governance Achievements

• Maintained ISO 14001 and ISO 45001 certifications.
• Implemented a robust Information Security Management System (ISMS) working towards ISO 27001 and TISAX certifications.
• Established a formal Conflict Minerals Policy.
• Implemented an anti-retaliation policy.
• Provided multiple channels for grievance reporting, including an anonymous reporting site.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Meeting ambitious carbon reduction goals
• Maintaining a diverse and inclusive workforce in a tight labor market.

Mitigation Strategies

• Increased engagement with the supply chain to report on additional metrics.
• Working on SBTi submission, including gathering emissions data from the supply base.
• Implementing LEP program, opening a childcare center, leasing a building in Grand Rapids to improve workforce diversity and inclusion.

Supply Chain Management

Responsible Procurement

• Supplier diversity program
• Tier II Supplier Reporting Initiative
• Requirements for supplier quality management systems (ISO 9001, IATF 16949, etc.)

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Cadmium-free digital light sensors
• Lead-free reflective coatings
• Lead-free wire harnesses and soldering methods

Awards & Recognition

• Toyota Excellent Supplier Diversity Award
• Nissan Supplier Diversity Certificate
• Honda Excellence in Delivery and Quality Award
• Michigan Best and Brightest in Wellness award
• Corp! Magazine 2022 Diversity Focused Company