Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Energy Consumption and CO2 Emissions
• Waste Management
• Water Management
• Human Rights Respect
• Freedom of Association
• Diversity, Equal Opportunities Promotion and People Development
• Attractive Working Conditions and Work/Life Balance
• Occupational Health and Safety
• Business Ethics and Integrity
• Responsible Procurement Practices and Sustainable Logistics
• Innovative and Eco-Responsible Products

Environmental Achievements

• Reduced energy consumption and CO2 emissions through process re-engineering.
• Reduced waste coolant by 80% in Sofima Shanghai Co. Ltd. through the revamping of the water pipe network.
• Recycled, reused, or recovered 66% of total waste.

Social Achievements

• Implemented Smart-Working Policy, improving work-life balance.
• Reduced work-related injuries (Lost Time Accidents) by 30 bps compared to 2019.
• Maintained low employee turnover rate.
• Implemented various Corporate Social Responsibility initiatives in local communities.

Governance Achievements

• No violations or non-compliance events recorded in 2021.
• Implemented a robust whistle-blowing policy and investigation process.
• Maintained compliance with legal regulations and internal rules.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to various factors (political tensions, container shortages, exchange rate volatility).

Mitigation Strategies

• Developed a strategy favoring local supply chains to increase sustainability and reduce risks.
• Implemented the IMDS system for material data management.
• Required suppliers to comply with the Group Material Compliance Policy.

Supply Chain Management

Responsible Procurement

• Group Material Compliance Policy
• IMDS system
• Strategy favoring local supply chains

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards (Core Option)

Certifications: ISO 45001 (84.4% of employees in certified sites), ISO 14001 (72% of industrial sites), IATF 16949 (100% of sites delivering to automotive OEMs)

Sustainable Products & Innovation

• MULTITUBE air filter
• D+Fend filters
• Masks Defender KN95 and FFP2
• Water-cooled and vacuum-brazed aluminum heat exchangers

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced total electricity consumption by 2.4% year over year
• Improved energy intensity by 1.39% year to year (MJ/produced pieces)
• Reduced hazardous waste by 20%
• Increased recycling of non-hazardous waste to 75%

Social Achievements

• Reduced total number of recordable incidents by 19%
• Improved injury frequency index from 6.55 in 2019 to 4.12 in 2022
• Implemented SMART WORKING policy
• Launched talent programs in APAC and EMEA

Governance Achievements

• Reviewed and updated Code of Ethics
• Implemented Anti-Bribery policy
• Updated Whistleblowing Policy
• Launched a new web-based e-Learning platform for employee training

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to geopolitical tensions, exchange rate volatility, raw material price increases, and protectionism
• Shipping industry challenges including port closures, congestions, labor shortages, and container shortages
• Rapidly evolving automotive market driven by decarbonization

Mitigation Strategies

• Developing a local-to-local purchasing strategy to reduce reliance on long-distance shipping
• Implementing a multi-stage supplier approval process with focus on ESG compliance
• Investing in new plants and processes to develop products for the electric vehicle market

Supply Chain Management

Responsible Procurement

• Multi-stage supplier approval process
• Requirement of certifications (ISO 9001, ISO 14001, ISO 45001)
• Pilot initiative for assessment of suppliers’ sustainability performance

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and thermal management systems for NEVs

Reporting Standards

Frameworks Used: GRI Standards (2021)

Certifications: ISO 45001, ISO 14001, IATF 16949:2016

Third-party Assurance: EY S.p.A. (limited assurance)

Sustainable Products & Innovation

• Thermal management systems for NEVs
• Fuel cell components

Awards & Recognition

• Truck Innovation Award
• Sustainable Truck of the Year Award

Environmental Metrics

ESG Focus Areas

• Decarbonization
• Circularity
• Climate Change
• Human Rights Respect
• Environmental Protection
• Innovative and Eco-Responsible Products
• Business Ethics and Integrity
• Supporting Local Communities
• Group Economic Performance
• Occupational Health and Safety
• Diversity, Equal Opportunities and People Development
• Attractive Working Conditions

Environmental Achievements

• Reduction in recordable incidents (LTAs) by 23% from 2022 to 2023 (39 to 30).
• Reduction in Injury Frequency Index from 4.12 in 2022 to 3.28 in 2023.
• Increased recycled waste to 75.2% in 2023 (from 71.4% in 2022).
• Reduction in hazardous waste sent to landfill by nearly 70 tons in 2023.
• 9.24% reduction in Scope 1 emissions between 2022 and 2023.

Social Achievements

• 4.5% increase in on-roll permanent employees in 2023.
• 15% of workforce has been with UFI for over 15 years.
• 35% of employees have tenure exceeding 5 years.
• 78.3% of people work in sites with ISO 45001 Certification.
• Implementation of a new e-Learning platform for employee training.
• Delivery of almost 42,500 training hours to all employees in 2023.

Governance Achievements

• No corruption events recorded in 2023.
• No legal action relating to unfair competition reported in 2023.
• Enhanced Company Website with a dedicated page for whistleblowing reports.
• Updated Whistleblowing Policy in 2023.
• Implementation of a Supplier Code of Conduct.
• Acquisition of Authorized Economic Operator (AEO) Full certification for UFI Filters S.p.A.

Climate Goals & Targets

Environmental Challenges

• Climate change and its impact on operations.
• Evolving industry dynamics and stakeholder expectations.
• Supply chain disruptions due to geopolitical tensions and inflation.
• Maintaining competitiveness in a dynamic market.
• Attracting and retaining talent.
• Managing risks associated with global operations and diverse regulatory contexts.

Mitigation Strategies

• Investing in research and development of clean mobility solutions.
• Implementing energy-saving initiatives and integrating energy-efficient technologies.
• Developing a local-to-local purchasing approach.
• Implementing robust waste management practices and increasing recycling rates.
• Developing and implementing a Supplier Code of Conduct.
• Fostering a supportive work environment and providing comprehensive employee benefits.
• Implementing a comprehensive compliance and risk management system.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• Prioritizing local suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Droughts
• Floods
• Extreme weather events

Transition Risks

• Stringent low-emission regulations
• Shift towards electric vehicles

Opportunities

• Development of energy-efficient products
• Integration of hydrogen fuel cells into product portfolio

Reporting Standards

Frameworks Used: GRI Standards (2021)

Certifications: ISO 14001, ISO 45001, IATF 16949:2016

Third-party Assurance: Plastic Technology S.p.A.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Hydrogen fuel cell components
• E-axle coolers
• Cathode air filter modules

Awards & Recognition

• Not disclosed