Climate Change Data

Environmental Metrics

ESG Focus Areas

• Resource efficiency
• Human Resources
• Supply Chain
• Compliance
• Energy Consumption
• Logistics

Environmental Achievements

• Almost exclusively supplies RoHS- and REACH-compliant products. Exceptions are still permitted for individual products. Inventories of non-compliant raw materials are being systematically reduced and disposed of professionally.
• Lead-free soldering of electronic components
• Prohibition of environmentally unfriendly flame-retardant materials in plastics

Social Achievements

• Supports initiatives that contribute to preserving and promoting equal opportunities and diversity within the company.
• Focus on health and professional training opportunities for employees.
• Anti-discriminatory recruitment and a work environment in which diversity is perceived as an asset.

Governance Achievements

• Developed a Code of Conduct as part of the First Sensor Group’s compliance management.
• Internal and external whistle-blowers are given protection where necessary.
• No breaches of the law or complaints in this regard in 2016

Climate Goals & Targets

Environmental Challenges

• Lack of systematic analysis of material sustainability aspects.
• Need to develop specific short-term and medium-term goals for sustainability.
• Energy-intensive manufacturing processes.
• Elaborate logistics process for raw materials, intermediates, and finished products.
• Aging workforce

Mitigation Strategies

• Developing a sustainability strategy building on the existing management handbook.
• Intending to develop specific goals for short-term and medium-term focus in fiscal year 2017.
• Working towards implementing logistically optimized material deliveries within the production chain.
• Continuous optimization process to make production more resource-conserving.
• Plans to regulate longer-term employment for older employees based on individual agreements.

Supply Chain Management

Responsible Procurement

• Obliging suppliers to comply with certain minimum standards.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: German Sustainability Code

Environmental Metrics

ESG Focus Areas

• Legal Compliance
• Occupational Health and Safety
• Economic Performance
• Employee Rights
• Environmental and Social Responsibility of Suppliers
• Water Consumption
• Waste Management
• Energy Consumption
• Community Involvement
• Data Protection
• Corruption and Competitive Conduct
• Employee Structure
• Employee Benefits
• Material Usage

Environmental Achievements

• Two production locations implemented ISO 14001 environmental management systems.

Social Achievements

• Offered various working hour models to accommodate employee needs.
• Invested €315,000 in employee training and education.
• No reported incidents of discrimination.

Governance Achievements

• Implemented a Group-wide Enterprise Risk Management (ERM) system.
• Developed a Code of Conduct effective January 1, 2018.
• Executive Board remuneration promotes value-oriented business management.

Climate Goals & Targets

Environmental Challenges

• Incomplete database for resource consumption (energy and water).
• Lack of a comprehensive sustainability strategy.
• Need to develop a system for reporting on specific employee rights issues.
• Limited potential to influence the entire value chain regarding raw material sourcing.

Mitigation Strategies

• Working towards developing a sustainability strategy through a bottom-up approach.
• Developing systems for reporting on employee rights issues.
• Establishing criteria for evaluating existing and new suppliers regarding environmental and social responsibility.
• Implementing a Supplier Code of Conduct in 2018.
• Conducting more detailed examination of the entire value chain in 2018.

Supply Chain Management

Responsible Procurement

• Supplier audits
• Development of a Supplier Code of Conduct in 2018

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards (partially), German Sustainability Code

Certifications: ISO 14001 (two production locations)

Environmental Metrics

ESG Focus Areas

• Compliance with laws
• Employee structure
• Performance record
• Employee rights
• Corruption and competitive conduct
• Data protection
• Occupational health and safety

Environmental Achievements

• Implemented ISO 14001 environmental management system at two production locations.
• Initiated supplier self-disclosure to identify environmental impacts in the supply chain.

Social Achievements

• Signed the Diversity Charter in 2018.
• Increased proportion of part-time employees to 15.5%.
• Implemented HSE management policy at three German locations.
• Introduced health measures such as free fruit, flu vaccinations, and health days.

Governance Achievements

• Established a risk and compliance management system.
• Implemented a Code of Conduct covering ethical conduct, data protection, and employee rights.
• Proactively reported and resolved a regulatory offense.

Climate Goals & Targets

Environmental Challenges

• Lack of comprehensive data on emissions and resource consumption.
• Need to further develop performance indicators for material action areas.
• Need to expand HSE management policy to more locations.

Mitigation Strategies

• Initiated a company suggestions scheme to improve resource efficiency.
• Developing a system to measure and manage key parameters.
• Gradually defining performance indicators for material action areas.
• Expanding HSE management policy to two more locations in 2020.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Comprehensive questionnaire for potential suppliers covering procurement, environmental management, and compliance with relevant directives.
• Code of conduct for suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: German Sustainability Code, GRI Standard

Certifications: ISO 14001 (two locations)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Social Responsibility
• Governance

Environmental Achievements

• CO2 emissions were well below the target levels for climate protection.

Social Achievements

• Blood donation drive at the Berlin-Oberschöneweide location.
• Implemented an operational coronavirus pandemic plan.

Governance Achievements

• Established a risk and compliance management system.
• Implemented a Code of Conduct for employees and suppliers.
• No suspected cases or findings reported to the Supervisory Board regarding sustainability system implementation.

Climate Goals & Targets

Environmental Challenges

• Coronavirus pandemic impacted social issues and business operations.
• Fluctuations in utilization and temporarily filling vacant positions.
• Implementation of HSE management policy at one location delayed.

Mitigation Strategies

• Implemented short-time working.
• Worked with temporary employment agencies.
• Developed and implemented an operational coronavirus pandemic plan.
• Intensive audits carried out at all German locations to identify and address potential improvements in HSE.

Supply Chain Management

Responsible Procurement

• Comprehensive questionnaire for potential suppliers covering procurement, warehousing, packaging, environmental management, RoHS, REACH, and Dodd-Frank Act.
• Code of conduct for suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: German Sustainability Code, GRI Standard

Certifications: ISO 14001 (two production locations)

Sustainable Products & Innovation

• Sensors and sensor systems contributing to energy efficiency and emission reduction in customer applications.

Environmental Metrics

ESG Focus Areas

• Environmental management of operations
• Environmental and social management of product creation and supply chain
• Social performance, including inclusion and diversity, safety, human rights and communities

Environmental Achievements

• Not disclosed

Social Achievements

• Integrated TE Global Job Framework for comparable pay regardless of gender, age, or other personal features.
• Implemented a company suggestion scheme to improve processes and reduce environmental impact (pilot phase).

Governance Achievements

• Established a risk and compliance management system.
• Implemented a procedure for reporting compliance violations (whistle-blowing).

Climate Goals & Targets

Environmental Challenges

• Limited options for influencing the rest of the value chain regarding environmental impact.
• Difficulty in obtaining detailed information on the environmental impact of company activities due to integration into TE Group.

Mitigation Strategies

• Adopted TE Connectivity’s guidelines on responsible sourcing and supplier assessment.
• Integrated First Sensor’s HSE management into TE’s system for standardized application of standards across locations.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Compliance with TE Connectivity’s Supplier Guide to Social Responsibility (SSR Guide), including minimum standards and supplier questionnaires.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: German Sustainability Code, GRI Standard

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced greenhouse gas emissions (Specific figures not provided, but data collected and included in TE Connectivity's report)
• Implemented energy efficiency operating standards (Specific figures not provided, but data collected and included in TE Connectivity's report)
• Reduced water consumption at targeted sites (Specific figures not provided, but data collected and included in TE Connectivity's report)

Social Achievements

• Implemented TE Connectivity's Global Job Framework, guaranteeing comparable pay for comparable work regardless of gender, age, or other personal characteristics
• Continued apprenticeship program with 30 apprentices (previous year: 28)
• Implemented a diversity concept emphasizing equal opportunities

Governance Achievements

• Adopted TE Connectivity’s standards on ethics and compliance
• Implemented a procedure for reporting compliance violations (whistle-blowing)

Climate Goals & Targets

Environmental Challenges

• Disrupted supply chains due to the Corona pandemic
• Distortions in international trade relations due to the war in Ukraine
• Rapid increases in material and energy costs
• Unusually high inflation
• Challenges related to the introduction of new ERP software
• Relocation of production from TE Connectivity site in Dortmund to First Sensor in Berlin

Mitigation Strategies

• Integrating into TE Connectivity's sales structures to reach a broader customer base
• Relocation of production to Berlin to become the European center of excellence for wafer production within TE Connectivity
• Improvements made to address issues with ERP software
• Increase in inventories to compensate for production delays

Supply Chain Management

Responsible Procurement

• ISO 9001
• Codes of conduct
• Due diligence
• Supplier assessment considering environmental, social, and human rights aspects
• TE Connectivity’s Guide to Supplier Social Responsibility

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, German Sustainability Code

Certifications: ISO 14001, IATF 16949, EN ISO 13485, DIN EN 9100, EN ISO 9001

Third-party Assurance: Ebner Stolz GmbH & Co. KG Wirtschaftsprüfungsgesellschaft Steuerberatungsgesellschaft

Sustainable Products & Innovation

• Simplified gas property sensor for respirators
• Photodiodes for aerospace and LiDAR applications
• Imaging sensors using chip-on-board technology

Environmental Metrics

ESG Focus Areas

• Planet (emissions, water, waste)
• Products (innovative, meaningful products, responsible supply chain)
• People (human rights, safe business activities, diversity, inclusion)

Environmental Achievements

• Reduced total Scope 1 emissions from 297 to 219 megatons of CO2 equivalents
• Switched electricity supply to renewable energy at Berlin locations and subsidiary

Social Achievements

• Increased number of permanent employees by 10.5% to 686 FTEs
• Maintained percentage of women employees at 32.8%
• Reduced TRIR (Total Recordable Incident Rate) from 0.3 to 0.2 per 100 employees
• Invested €337 thousand in training and further professional development

Governance Achievements

• Implemented TE Connectivity’s sustainability strategy and corporate values
• Established a risk and compliance management system covering ESG risks
• No suspected compliance violations reported to the Supervisory Board

Climate Goals & Targets

Environmental Challenges

• Temporary negative impact of the economic environment
• Acquiring and retaining staff due to competition for specialists
• Elevated inventory levels to ensure supply capacity

Mitigation Strategies

• Capacity expansions at First Sensor and new projects from TE Connectivity Group
• Transition to TE Connectivity remuneration model
• Investments to expand production and ensure material availability
• Optimizing production processes under “operational excellence”

Supply Chain Management

Responsible Procurement

• Supply chain management including ISO 9001, codes of conduct, due diligence, and supplier assessment
• Emergency planning for the supply chain, transparency, and traceability
• Relevant policies, guidelines, and environmental management systems

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, German Sustainability Code

Certifications: ISO 14001, IATF 16949, EN ISO 13485, DIN EN 9100, EN ISO 9001

Third-party Assurance: None

Sustainable Products & Innovation

• Energy-efficient sensors and sensor systems