Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate change mitigation
• Resource conservation
• Diversity & equal opportunities
• Responsible sourcing
• Good governance

Environmental Achievements

• Reduced GHG emissions (Scope 1 and 2) by 58% compared to the previous year.
• Used green electricity at all European production sites.
• Reduced VARTA Consumer's plastic consumption by 15% with new cardboard packaging.

Social Achievements

• Welcomed more than 250 new employees in 2021.
• Recorded an employee fluctuation rate of only 3.5%.
• Reached the excellence class in the Corporate Health Award.

Governance Achievements

• Established a complete due diligence management system in accordance with the OECD Due Diligence Guidance.
• Developed a digital training course on anti-corruption for all employees.
• Embedded sustainability throughout VARTA’s structure, with reporting to the highest governance body.

Climate Goals & Targets

Environmental Challenges

• Increasing energy consumption due to expanding production capacities and increased production of rechargeable batteries.
• Complex supply chain with potential risks for human rights violations.
• Need to continuously improve resource efficiency and reduce environmental impact.

Mitigation Strategies

• Implementing improved energy management systems and installing further photovoltaic systems.
• Monitoring relevant actors in the supply chain for 3TG and other critical minerals, establishing a responsible sourcing policy and using RMI and amfori BSCI.
• Continuous monitoring of sustainability performance, optimizing processes to minimize waste, and substituting hazardous substances.

Supply Chain Management

Supplier Audits: Regular audits at selected suppliers covering the 13 performance areas of amfori BSCI.

Responsible Procurement

• Supplier Code of Conduct based on the 11 principles of amfori BSCI.
• OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-affected and High-risk Areas (CAHRA).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001 (100% of production sites), ISO 50001 (Ellwangen, Nördlingen, Brasov)

UN Sustainable Development Goals

• SDG 7
• SDG 8
• SDG 9
• SDG 12
• SDG 13

VARTA's products and business activities contribute to these goals through renewable energy use, responsible sourcing, innovation, resource efficiency, and climate change mitigation.

Sustainable Products & Innovation

• New environmentally-friendly packaging for VARTA Consumer products.

Awards & Recognition

• Corporate Health Award (Excellence Class)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Equal Opportunities
• Human Rights
• Resource Conservation
• Energy Efficiency
• Supply Chain Sustainability
• Governance

Environmental Achievements

• Reduced scope 1 & 2 emissions by 62% over the last two years
• Installed PV systems producing up to 91 MWh of green electricity per year
• Lowered carbon emissions by 37 tCO2e using green gas for district heating
• Recycled 3002 tons of materials
• 25% reduction in plastic packaging for VARTA Consumer Batteries product portfolio compared to 2020
• Increased plastic-free packaging from 18% to 36% compared to 2020 in Alkaline portfolio

Social Achievements

• All production sites achieved a Workplace Performance Index of over 85% in Workplace Conditions Assessment
• Spent more than €1m to train employees
• Trained almost 180 employees on sustainability topics
• 96% of employees covered by collective bargaining agreements or aligned with such
• Employee turnover rate of 5.5%
• Supported local clubs and youth development through sponsorships

Governance Achievements

• 50% of Executive Board members adopted variable remuneration targets linked to ESG criteria
• Implemented a human rights due diligence management system
• Information security management system is TISAX®-compliant
• Developed and implemented a VARTA Code of Conduct
• Launched a VARTA Integrity Line whistleblower system
• Improved ESG Risk Rating from Sustainalytics, moving from 'medium risk' to 'low risk'

Climate Goals & Targets

Environmental Challenges

• Climate-related transition risks (regulatory changes, market shifts, low-carbon alternatives)
• Climate-related physical risks (floods, droughts, temperature increase)
• Supply chain disruptions due to geopolitical factors and energy scarcity
• Ensuring compliance with sustainability standards across the complex supply chain
• Lack of transparency and available data to benchmark products for EU Taxonomy alignment

Mitigation Strategies

• Proactive response to emerging regulations
• Life cycle assessments for less carbon-intensive batteries
• Investment in R&D for improved technology
• Aiming to purchase 100% renewable electricity by 2030
• Implementing preventive measures against physical risks (e.g., backwater flaps)
• Collaboration with suppliers to adopt sustainable methods
• Amfori BSCI audits of suppliers
• VARTA Supplier Code of Conduct
• Development of a digital energy management system

Supply Chain Management

Supplier Audits: 42% of targeted suppliers presented a valid amfori BSCI audit or equivalent

Responsible Procurement

• VARTA Supplier Code of Conduct
• Amfori BSCI principles
• Due diligence processes for minerals
• Supply Chain Questionnaire
• prewave AI-based software for monitoring supply chain risks

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Droughts
• Long-term temperature increase

Transition Risks

• Regulatory changes (carbon taxes, carbon border taxes, EU battery rules)
• Market shifts (low-carbon alternatives)
• Customer actions to reduce emissions

Opportunities

• Development of energy-efficient products
• Growth in the market for battery-powered products
• Demand for renewable energy

Reporting Standards

Frameworks Used: GRI Standards, TCFD, UN SDGs, amfori BSCI, UN Global Compact, Science Based Targets initiative (SBTi)

Certifications: ISO 9001, ISO 14001, ISO 13485 (selected locations), ISO 80079-34 (Batam facility), TISAX®

Third-party Assurance: Third-party verification of GHG emissions

UN Sustainable Development Goals

• SDG 7
• SDG 8
• SDG 9
• SDG 12
• SDG 13

VARTA's products and activities contribute to these goals through renewable energy use, decent work practices, innovation, resource efficiency, and climate change mitigation

Sustainable Products & Innovation

• Less carbon-intensive batteries
• Eco-friendly packaging solutions

Awards & Recognition

• ESG Industry Top Rated for 2023 (Sustainalytics)
• Top-Arbeitgeber Donauries (Top Employer Donauries)

Environmental Metrics

ESG Focus Areas

• Responsible Sourcing
• Human Rights
• Supply Chain Due Diligence

Social Achievements

• Implemented the principles of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas.
• Developed a six-step strategic plan for suppliers with increased sustainability-related risks.

Governance Achievements

• Established a grievance mechanism aligned with UNGP criteria.
• Implemented the Conflict Minerals Reporting Template (CMRT) and Extended Minerals Reporting Template (EMRT) to enhance supply chain transparency.
• Developed an additional template (Supply Chain Questionnaire) for minerals not included in CMRT and EMRT.

Climate Goals & Targets

Environmental Challenges

• Potential negative consequences of mineral extraction, trade, handling, and export from conflict-affected and high-risk areas (CAHRA).
• Challenges in achieving full transparency and due diligence in raw materials supply chains.
• Multiple supply chain actors between VARTA and smelters/refiners making direct evaluation of their due diligence measures difficult.

Mitigation Strategies

• Adopted a policy on responsible sourcing of relevant minerals from CAHRAs based on OECD guidelines.
• Implemented a six-step strategic plan for suppliers to increase transparency and due diligence measures.
• Used CMRT, EMRT, and a Supply Chain Questionnaire to identify and assess risks.
• Collaborated with an external software provider for data collection and aggregation.
• Used RMI's Material Insights platform and a supply chain risk intelligence platform to monitor risks.
• Developed a corrective action plan template for suppliers with non-certified smelters.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct (including amfori BSCI Code of Conduct and OECD Due Diligence Guidance Annex II)
• Responsible Sourcing Policy
• Requirements incorporated into Terms and Conditions of Purchase

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas