Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic responsibility
• Social responsibility
• Environmental responsibility

Environmental Achievements

• Total energy consumption in proportion to output at Componenta foundries in 2006 fell 6% compared to 2005.
• The amount of waste per tonne produced at the foundries declined approximately 7% in 2006 compared to 2005.
• The amount of waste water at the machine shops declined about 30% in 2006 from 2005.
• Amount of dust emissions per tonne produced declined at the foundries by 32% from 2005.
• VOC emissions from the use of amines and solvents at the foundries declined in 2006 by 16% per tonne produced from the previous year.

Social Achievements

• Developed effective and efficient provision of human resource services to business needs.
• Renewed salary schemes especially in production operations and further developed systems that support the achievement of targets and performance-based pay.
• Country-specific training programmes were held for day-to-day personnel management.
• Training for foremen in developing supervisory skills has also begun in Finland and the Netherlands.

Governance Achievements

• Complies with the insider regulations of the Helsinki Exchanges and also with its own insider regulations.
• Internal monitoring at Componenta Group takes place in accordance with the operating principles approved by the Board of Directors.

Climate Goals & Targets

Environmental Challenges

• Price fluctuations for recycled metal, the main raw material, affect sales margins.
• Electricity consumption creates a spot price risk.
• Acquisition of Döktas created a significant currency position in Turkish lira.
• Low level of interest shown by young people to work in the metal sector (Finland, Sweden, Netherlands).

Mitigation Strategies

• Purchases electricity price forwards to hedge against price impacts.
• Aims to pass on increased electricity prices to customers.
• Hedging of translation and transaction risk in Turkish lira.
• Collaboration with educational institutions, offering training jobs and specialization opportunities to students.

Supply Chain Management

Responsible Procurement

• ISO certification is a minimum requirement for suppliers.
• Suppliers are required to meet the same standards as Componenta.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, ISO 9001, ISO/TS 16949

Environmental Metrics

ESG Focus Areas

• Economic responsibility
• Social responsibility
• Environmental responsibility

Environmental Achievements

• Improved energy efficiency in foundries by 11% compared to 2006
• Reduced VOC emissions per tonne produced by 11% compared to the previous year
• Increased reuse of waste, with 54% of waste sorted and reused (up from previous years)

Social Achievements

• Decreased employee turnover rate to 8% (from 10% in 2006)
• Implemented corporate-wide performance management practice in Turkey
• Launched an international traineeship program offering opportunities to 25 university students

Governance Achievements

• Complied with Corporate Governance recommendations for public listed companies
• Received the first prize in the competition for “The Best IR Website 2007”

Climate Goals & Targets

Environmental Challenges

• High prices of raw materials and energy
• Rising environmental costs (waste management costs increased)
• Poor availability of suitable recycled steel
• Odour inconvenience in the neighbourhood of the Heerlen foundry

Mitigation Strategies

• Optimized production to achieve cost efficiency
• Investments to increase production capacity and improve efficiency
• Implemented measures to reduce VOC emissions (catalytic after-burner installation)
• Developed a program of action to reduce odour inconvenience at Heerlen foundry
• Improved mould yield to reduce energy consumption at Karkkila foundry

Supply Chain Management

Responsible Procurement

• Corporate purchasing policy for safety and environmental management, social responsibility and ethical standards

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 9001, ISO/TS 16949, ISO 14001

Awards & Recognition

• Wärtsilä Supplier Award to Componenta Pistons
• First prize in the competition for “The Best IR Website 2007”

Environmental Metrics

ESG Focus Areas

• Economic Responsibility
• Environmental Responsibility
• Social Responsibility

Environmental Achievements

• Increased the amount of waste that was reused to 72% from 54% in the previous year.
• Reduced VOC emissions from painting with a new paint shop at the Karkkila foundry.
• Commissioned a new filter plant at the Pietarsaari foundry to comply with environmental requirements and improve energy efficiency.

Social Achievements

• Continued post-merger integration of operations.
• Strengthened service resources in sales and engineering by recruiting new professionals.
• Started a two-year international traineeship program.

Governance Achievements

• Complied with the Corporate Governance recommendations for public listed companies issued by NASDAQ OMX Helsinki.

Climate Goals & Targets

Environmental Challenges

• Decreased demand towards the end of 2008, requiring major adjustments in production.
• Fluctuations in raw material prices.
• High demand early in the year leading to near maximum capacity usage.

Mitigation Strategies

• Started adjustment measures in production in October 2008.
• Introduced a system to pass on the impact of raw material prices to customer prices.
• Took remedial measures to reduce production and bring it in line with lower demand.
• Intensified actions to collect customer receivables.

Supply Chain Management

Responsible Procurement

• Code of Conduct
• ISO 9001 and ISO 14001 certifications for suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, OHSAS 18001 (in Manisa and Orhangazi)

Third-party Assurance: Level C assurance by independent third-party check by future, specialized in corporate sustainability

Sustainable Products & Innovation

• Lighter car component for Fiat, reducing weight by 40%.

Awards & Recognition

• JIPM award for productive maintenance at Orhangazi foundry.

Environmental Metrics

ESG Focus Areas

• Economic responsibility
• Social responsibility
• Environmental responsibility

Environmental Achievements

• Reduced dust emissions by 37% in absolute terms.
• Improved dust extraction at Pietarsaari foundry with a new filter plant.
• Switched smelting at Orhangazi from arc furnaces to induction furnaces, reducing particle emissions.

Social Achievements

• Adjusted working hours to minimize redundancies due to economic downturn.
• Maintained continuous dialogue and cooperation with personnel.
• Improved employee competence through training programs and job rotation.

Governance Achievements

• Strengthened balance sheet and financial position by issuing new shares and offering a subordinated capital loan.
• Improved customer service through new customer segmentation and strengthened sales and engineering resources.
• Enhanced risk management through risk analyses.

Climate Goals & Targets

Environmental Challenges

• Economic recession leading to a significant decline in net sales and production volumes.
• Low capacity utilization resulting in higher energy consumption per tonne produced.
• Odour inconvenience from the Heerlen foundry.

Mitigation Strategies

• Reduced operating costs, improved cash flow, and optimized production through internal sourcing and product transfers.
• Implemented measures to improve energy efficiency, such as modifications to ventilation equipment and heat recovery solutions.
• Working with authorities and experts to address odour issues at Heerlen foundry (considering a high chimney).

Supply Chain Management

Responsible Procurement

• Compliance with legislation and directives.
• Code of Conduct for purchasing personnel.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3 Guidelines

Certifications: ISO 9001, ISO/TS 16949, ISO 14001, OHSAS 18001 (Turkey)

Third-party Assurance: Tofuture Oy (GRI Application Level B)

Awards & Recognition

• JIPM Excellence Award (Manisa plants)

Environmental Metrics

ESG Focus Areas

• Economic Responsibility
• Environmental Responsibility
• Social Responsibility

Environmental Achievements

• Reduced particle emissions per tonne produced by 21% from the previous year.
• Recycled or reused 78% of waste generated.
• Improved energy efficiency, with energy consumption per tonne produced 15% lower than in 2009.

Social Achievements

• Implemented a new long-term incentive system linking key personnel targets to shareholder objectives.
• Concluded an occupational healthcare development project in Finland.
• Launched a two-year traineeship program.

Governance Achievements

• No cases of corruption reported in the Group during 2010.
• Complied with the Corporate Governance Code for Finnish listed companies.

Climate Goals & Targets

Environmental Challenges

• Under-utilization of production capacity.
• Intensifying competition and consolidation among customers and suppliers.
• Changes in the economic situation impacting the foundry industry.
• Need to develop necessary capabilities at an increasingly rapid rate due to extensive resource supply and low labor costs in developing markets.
• Challenges in recruiting competent personnel due to the specialized nature of the industry and location of production plants.

Mitigation Strategies

• Adjusted the Group’s operations structure to better support a smoothly functioning cast component supply chain.
• Continued the search for alternative suppliers of materials and goods to control delivery risks.
• Kept down investments in production facilities in 2010.
• Implemented a strong effort to recruit designers in all engineering centers.
• Used international job rotation to strengthen sales operations.
• Improved awareness of the company and its sector to ensure a prominent position on key labor markets.
• Partnered with education institutes.

Supply Chain Management

Responsible Procurement

• Suppliers must comply with the same standards for quality and environment in their business methods as Componenta.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3.1

Certifications: ISO 9001, ISO/TS 16949, ISO 14001, OHSAS 18001 (Turkey)

Third-party Assurance: Tofuture Oy (GRI Application Level B)

Environmental Metrics

ESG Focus Areas

• Environmental responsibility
• Social responsibility
• Occupational health and safety
• Human rights
• Anti-corruption

Environmental Achievements

• Calculated carbon footprint for the first time in 2022 (58,890.06 t CO²e in 2021).
• Improved energy efficiency in various units through measures such as investing in a new furnace, replacing building automation, and automating lighting.
• Increased night-time production to contribute to national energy efforts.
• Achieved 92.7% waste recovery rate (94.6% in 2021).

Social Achievements

• Meaningful work score improved to 4.3 in employee survey.
• Work motivation score improved to 3.7 in employee survey.
• Employee survey response rate increased to 72%.
• Accident frequency rate at Componenta Manufacturing Oy decreased by 50%.
• Three production units achieved an accident-free year.
• Daily management skills training provided to around 60 supervisors.

Governance Achievements

• Implemented a cloud-based HR system.
• Introduced regular safety walks and safety briefings.
• 97.4% of white-collar employees attended Code of Conduct training.
• Code of Conduct reviewed with 84.8% of blue-collar employees.

Climate Goals & Targets

Environmental Challenges

• Challenging operating environment with uncertainties due to the war in Ukraine and high inflation.
• High electricity prices.
• Challenges in material availability and cost development.
• Quality and productivity challenges at the Karkkila foundry.
• Increased long-term and short-term absences due to illness or accidents.
• Accident frequency rate higher than target.

Mitigation Strategies

• Implemented an electricity fee tied to sales prices.
• Increased night-time production in energy-intensive operations.
• Improved energy efficiency in various units.
• Strengthened sales organization in Finland and Sweden.
• Investing in occupational safety and healthy working practices.
• Developing occupational safety processes and providing training.

Supply Chain Management

Supplier Audits: 73% of total purchases in euros were from suppliers who accepted Componenta’s Supplier and Subcontractor Code of Conduct.

Responsible Procurement

• Supplier and Subcontractor Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GHG Protocol Corporate Accounting and Reporting standard, GHG Protocol Corporate Value Chain Accounting and Reporting standard

Certifications: ISO 45001 (Karkkila and Pori foundries)

Environmental Metrics

ESG Focus Areas

• Sustainability
• Personnel
• Operational renewal
• Inorganic growth

Environmental Achievements

• Increased heat recovery in Karkkila
• Improved energy efficiency through service provider
• Developed new recycled scrap varieties to reduce pig iron use
• Ramping up raw material supply chains from local markets to shorten logistics
• Forge improved production efficiency and reduced heat loss through furnace modernization
• Acquired an energy-efficient pipe cutting line for the tube service unit
• Total energy consumption decreased by 4.1%

Social Achievements

• Sickness absence rate decreased significantly to 4.8%
• 94% of personnel participated in safety training
• Three production units achieved an accident-free year
• Electronic personnel benefits introduced to support employees’ sports activities and coping at work
• Day-to-day management skills training provided to around 60 supervisors

Governance Achievements

• Code of Conduct reviewed with employees
• No reports submitted through the whistleblowing channel in 2023

Climate Goals & Targets

Environmental Challenges

• Lower than expected production volumes in the second half of 2023 due to modest customer order books and optimized stock levels
• Decreased factory utilization rates negatively impacting production efficiency and profitability
• Industry-specific wage agreements, prolonged scheduled maintenance, and ramp-up of new high-volume products impacting profitability
• Challenges with quality in Karkkila foundry leading to greater energy use
• Financing company responsible for factoring services had repeated delays in payments
• Average market prices of electricity remained at a fairly high level with high daily and hourly price fluctuations
• Geopolitical situation causing uncertainties in raw material availability
• Global challenges with component availability for customers potentially leading to production disruptions

Mitigation Strategies

• Signed an agreement for a EUR 4 million net working capital loan
• Terminated factoring and credit facility agreement and entered into an agreement with a new partner (Avida Finans AB)
• Actively engaging in discussions with suppliers, updating needs forecast, optimizing inventory levels
• Index-based price agreements to manage raw material cost risk
• Improving occupational safety and supporting activities that maintain working capacity to manage occupational health risks
• Developing occupational safety processes and providing training to reduce the accident frequency rate
• Continuously monitoring liquidity risk

Supply Chain Management

Supplier Audits: 68% of total purchases in euros were from suppliers that had accepted Componenta’s Supplier and Subcontractor Code of Conduct

Responsible Procurement

• Supplier and Subcontractor Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: CSRD

Certifications: ISO 45001

Third-party Assurance: PricewaterhouseCoopers Oy