Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate change
• Employee health & safety
• Workforce management
• Customer privacy & data security
• Ethical behavior & transparency
• Governance structures & mechanisms

Environmental Achievements

• Reduced CO2 emissions (Scope 1 & 2) by 38% compared to 2021 baseline.
• Purchased 100% of electricity used at all German sites from renewable sources.
• Reduced water consumption by 3.5% compared to 2021.

Social Achievements

• Increased training ratio regarding leadership development.
• Reduced work-related accidents (LTIFR) to 11.9 from 14.1 in 2021.
• Implemented a digital whistleblower system (RENK Integrity Line).

Governance Achievements

• Established a Group-wide compliance management system (CMS).
• Revised anti-corruption guidelines.
• Introduced a digital whistleblower system.

Climate Goals & Targets

Environmental Challenges

• Limited availability of electricity from renewable sources in Michigan.
• Complex supply chain with potential ESG risks.
• Need to reduce the number of materials containing lead.

Mitigation Strategies

• Energy audits at all sites starting in 2023.
• Introduction of a global supplier management system in 2023.
• Project to reduce lead-containing materials starting in 2023.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Responsible Minerals Initiative (RMI) approach
• Conflict Minerals Policy

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001 (Augsburg, Hanover, Winterthur, Bath), ISO 45001 (Augsburg, Hanover, Rheine, Winterthur, Bath), ISO 27001

Third-party Assurance: PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 5: Gender Equality
• Goal 9: Industry, Innovation and Infrastructure
• Goal 10: Reduced Inequalities
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action

RENK's initiatives contribute to these goals through various programs and targets.

Sustainable Products & Innovation

• IFPS (Integrated Front-end Power System)
• PSC (Propeller Shaft Clutch)
• etaX® and HET gear units®

Environmental Metrics

ESG Focus Areas

• Climate change
• Employee health & safety
• Workforce management
• Customer privacy & data security
• Ethical behavior & transparency
• Governance structures & mechanisms

Environmental Achievements

• Reduced CO2 emissions (Scope 1 & 2) relative to revenue by 10% (25.5 kg CO2e/€1,000 revenue in 2022 to 22.9 kg CO2e/€1,000 revenue in 2023)
• Increased renewable energy share to 55.8% (from 53.5% in 2021)
• Installed solar panels at Brazilian site for self-generated, emission-free electricity
• Reduced oil quantities in turbo gear units by up to 50%, reducing power loss and CO2 emissions
• Achieved 90% energy saving in test benches through energy recovery
• Reduced friction by 28% and lubricating oil by 35% with new AM12 plain bearing

Social Achievements

• Reduced work-related accidents (LTIFR) to 8.6/1.7 (from 14/2.8 in 2021)
• Increased employee engagement (eNPS) significantly from 2.3 to 17.4
• Signed the Diversity Charter
• Launched workshops on unconscious bias for managers
• Trained 136 apprentices in eight occupations

Governance Achievements

• Established a Group-wide compliance management system (CMS)
• Implemented a global supplier management system to ensure compliance with due diligence obligations
• Revised the Supplier Code of Conduct
• Introduced a Group-wide process for granting donations and sponsorships
• Established specific instructions and approval processes for dealing with conflicts of interest and secondary employment

Climate Goals & Targets

Environmental Challenges

• Major water pipe burst at Muskegon site leading to increased water consumption
• Complex supply chains requiring transparency and management
• Limited availability of renewable electricity at Muskegon site

Mitigation Strategies

• Close condition monitoring and preventive maintenance of water pipes
• Gradual introduction of a tool for software-based determination and monitoring of CO2 emissions from supply chain
• Initiated energy efficiency analysis at Muskegon site
• Planning to introduce an energy management system at EU sites by 2025

Supply Chain Management

Responsible Procurement

• Updated Supplier Code of Conduct
• Global supplier management system
• Supplier screening process
• Use of Dun & Bradstreet and Riskmethods for risk assessment
• RMI approach for tracking conflict minerals

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products
• Hydrogen economy
• CCUS
• Industrial heat pumps
• Wind energy

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, ISO 27001, ISO 45001

Third-party Assurance: PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 5: Gender Equality
• Goal 9: Industry, Innovation and Infrastructure
• Goal 10: Reduced Inequalities
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action

RENK's contribution to these goals is described in the report.

Sustainable Products & Innovation

• IFPS (Integrated Front-End Power System)
• PSC (Propeller Shaft Clutch)
• etaX® and HET-Gear® gearboxes
• Turbo Transmission
• Marine special gearboxes
• Condition Monitoring / TechCompanion
• AM12 plain bearing