Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Average 25% reduction in Quad/Graphics’ healthcare costs, thanks to QuadMed, as compared to comparable Midwest companies.
• 25% average reduction in environmental impact across our expanded platform. Our efforts include programs to promote “enlightened environmentalism” (i.e., education about sustainable business practices) and programs focused on recycling, energy, emissions, water and ink.

Social Achievements

• Empower, engage and develop our employees. All Quad employees are trusted entrepreneurs, encouraged to take ownership in their work and drive results. Skills and knowledge are kept current through continuing education programs. Our “promote from within” strategy results in leaders with long tenure and a deep understanding of our business and clients.
• We demonstrate our care for employees through innovative benefits such as QuadMed, which focuses on prevention and wellness.

Governance Achievements

• Quad/Graphics is a controlled public company with the Harry V. Quadracci family having voting control through ownership of high-vote stock. This structure provides consistency in ownership and leadership – and perpetuates our shareholder culture of being “our own best investment.”

Climate Goals & Targets

Environmental Challenges

• Intense competition in a highly fragmented printing industry remains intense as the industry is still in the process of consolidating and continues to suffer from overcapacity. The impacts of these factors have led to continued pricing pressures.
• Economic events of 2008 and 2009 prompted advertisers to cut spending, which reduced page counts in virtually every print product line resulting in excess capacity in the printing industry.

Mitigation Strategies

• Acquisition of Worldcolor to strengthen Quad/Graphics’ competitive position and increase market share.
• Integration of Worldcolor operations to maximize synergies, including plant consolidations, procurement savings, and SG&A expense reductions.
• Investment in technology, automation, and equipment upgrades across the North American platform to enhance efficiency and competitiveness.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Workplace
• Governance
• Marketplace
• Community
• Environment

Environmental Achievements

• Put in place processes to monitor its carbon dioxide emissions from air travel and reduce any unnecessary travel. Implemented greater energy-efficient measures in new office spaces. Reduced energy consumption in Estonia office with efficient cooling system. Moved to paperless environments, water fountains instead of bottled water, and waste separation and recycling.

Social Achievements

• Continued to invest in human capital. Expanded Social Involvement programme focusing on educational support for disadvantaged children. Gave approximately €170,000 to charitable organisations (2012: €50,000). Provided non-financial support (computer hardware and training). Implemented a new Code of Conduct and Anti-Bribery policy, disseminated to all employees with training initiatives.

Governance Achievements

• High standards of corporate governance. Revised and updated Code of Conduct and adopted a separate Anti-Bribery Policy. Established a formal Management Committee to improve decision-making processes. Implemented a revised long-term, share-based incentive scheme.

Climate Goals & Targets

Environmental Challenges

• Regulatory environment impacts on reputation and revenues. Changes in taxation of Group revenue. Competitive landscape may lead to loss of customers and revenues. Economic climate may lead to loss of customers and revenues. Reliance on key personnel. Business continuity and technology risk. Cash management risk.

Mitigation Strategies

• Established compliance function maintaining relationships with regulators and monitoring the regulatory environment. Closely monitors developments in jurisdictions with new licensing regimes and seeks joint ventures with local operators. Works closely with tax advisors to review tax position and monitor changes in tax legislation. Invests significant resources in R&D, acquisitions, and enhancing technology, products, content, and services. Licensees are geographically diverse. Comprehensive performance evaluation system to retain key personnel. Significant cash balances for acquisitions with established due diligence process. Holds cash in AAA-rated banks. Industry-standard protections against hacking and cybercrime, disaster recovery processes, and protection of intellectual property rights.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UK Corporate Governance Code

Certifications: ISO 14001

Awards & Recognition

• Best iGaming Software Provider Award at the International Gaming Awards (three years in a row)
• eGaming Review’s Bingo Network of the Year
• Bingo Supplier of the year

Environmental Metrics

ESG Focus Areas

• Sustainable development

Environmental Achievements

• Reduced greenhouse gas emissions by 56% since 2014
• Increased renewable electricity use in own operations to 78% (from 27% in 2014)
• Increased the percentage of sustainable cotton in the product range to 31% (from 8% in 2011)
• Collected 12,341 tonnes of clothing for reuse and recycling in 2015

Social Achievements

• Created 16,000 new jobs in 2015
• Signed a global framework agreement with IndustriALL Global Union and IF Metall to protect the interests of 1.6 million textile workers
• Women held 72% of positions of responsibility
• Contributed SEK 75 million to the H&M Incentive Program (HIP) for all employees

Governance Achievements

• Published supplier list at hm.com
• Zero tolerance of corruption policy implemented and actively monitored
• Board of directors discussed and addressed sustainability matters regularly

Climate Goals & Targets

Environmental Challenges

• Climate change
• Challenges in the textile industry in a number of countries (wages, working hours, safety)
• Strong US dollar impacting purchasing costs
• Unseasonably mild weather impacting sales
• Reputational risk
• Risks associated with sustainability issues
• Complex tax risks for multinational companies
• Fluctuation in US dollar/euro exchange rate
• Negative macroeconomic changes and geopolitical risks
• Risks associated with social tensions in sourcing markets

Mitigation Strategies

• Switching to renewable electricity
• Collaborations with various local and global players to improve working conditions and fair living wages
• Cost control measures
• Accurate, transparent and reliable communication
• Active work to support social development, ethical operations, climate-smart practices, and responsible use of natural resources
• Continual follow-up and knowledge-building programs to ensure compliance with H&M’s Code of Conduct
• Hedging currency risk through forward contracts
• Close monitoring of macroeconomic and geopolitical changes and development of strategies to manage fluctuations
• Compliance with national and international tax legislation

Supply Chain Management

Responsible Procurement

• H&M Code of Conduct (Sustainability Commitment)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Guidelines, UN Guiding Principles Reporting Framework (UNGP RF)

Sustainable Products & Innovation

• H&M Conscious Collection
• Denim with recycled fibres
• Garments made from recycled fibres from Garment Collecting

Awards & Recognition

• Libby Award for most animal-friendly clothing company
• Green Power Leadership Award from the United States Environmental Protection Agency
• Industry Mover in global retail (RobecoSAM)
• One of the world’s most ethical companies (Ethisphere Institute)

Environmental Metrics

ESG Focus Areas

• Operational Excellence
• Corporate Social Responsibility
• Quality Management

Environmental Achievements

• All plants are zero discharge; 86% of organic waste upcycled; more than 10% of energy needs met from renewable sources; 39.0 million units of solar power utilized, reducing carbon footprint by 38,611 MT of CO2e.
• Reduced air shipments to 51.7% in FY2020 against a target of 40%.

Social Achievements

• Self-Managed Teams (SMTs) program empowering shop floor employees; People Management Effectiveness Programme honing leadership abilities; Community Health Intervention Programme (CHIP) benefiting over 7,500 people; School Improvement Programme benefiting over 12,000 students; trained over 7,000 young adults for livelihood.
• Launched Medznat, a digital information platform in Russia, providing healthcare professionals with up-to-date scientific knowledge.

Governance Achievements

• Strong and independent Board; robust corporate governance framework; compliance with SEBI and NYSE standards; annual Board evaluation; Code of Business Conduct and Ethics; Ombudsperson procedure; Enterprise-wide Risk Management (ERM) system.

Climate Goals & Targets

Environmental Challenges

• USFDA warning letter following inspections of three plants, leading to delayed product launches and increased costs; economic problems in Russia and devaluation of the rouble, resulting in revenue decline; economic crisis in Venezuela restricting repatriation of funds.
• Generics pricing pressure in the USA; increased USFDA inspections of manufacturing facilities; mergers and acquisitions creating stronger competitors; economic stress in major emerging markets (Venezuela, Russia, Ukraine); price controls in Pharmerging markets.

Mitigation Strategies

• Comprehensive plan of corrective and remedial actions for USFDA observations; calibrated sales in Venezuela; strengthening pipeline with complex generics, better OTC offerings, and increasing institutional/hospitals business in Russia; implementing Intelligent Integration project for robust supply chain; institutionalizing operational excellence; addressing USFDA observations through enhanced CAPAs and strengthened Quality Management Systems; developing alternate sourcing strategies.

Supply Chain Management

Responsible Procurement

• Code of Conduct for partners; 60% procurement from domestic producers; initiatives to improve capacity and capabilities of local producers; mandatory supplier trainings.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Sustainable Products & Innovation

• Zembrace™ SymTouch™, Sernivo™ spray

Environmental Metrics

ESG Focus Areas

• Anticipating change and taking action
• Decarbonisation of the economy
• Responsible value chain
• Contribution to the development of society

Environmental Achievements

• Reduced direct greenhouse gas emissions by 8.7% (28,765 t CO₂ eq.)
• Achieved 82.6% reduction in emissions associated with electricity consumption compared to 2015.
• 33.8% of total electricity generated from renewable sources on the peninsular electricity system.
• 332 km of lines marked with bird-saving devices (45% of total scheduled).

Social Achievements

• 83.3% of new appointments to managerial positions were women.
• 24.8% of women in managerial positions in Spain.
• Reduction in accident frequency rate by 29.6% and severity rate by 44.4% for employees in Spain.
• Reduction in accident frequency rate by 29% and severity rate by 13% for contracted companies in Spain.
• 6.5 million euros contributed to social initiatives.

Governance Achievements

• Implementation of the Regulations of the Board of Directors.
• Complete digitalisation of Board of Directors sessions.
• Adaptation of the Internal Code of Conduct to the European Regulation on Market Abuse.
• Ongoing reinforcement of gender diversity on the Board of Directors.
• Development and implementation of the new Compliance System.

Climate Goals & Targets

Environmental Challenges

• Climate change and the need to transition to a zero-emission energy model.
• Integrating high penetration of renewable energy into the electricity system.
• Managing risks associated with the supply chain.
• Ensuring the social acceptance of projects.

Mitigation Strategies

• Climate Change Action Plan with emission reduction targets for 2020 and 2030.
• Investment in new electricity infrastructure and interconnections.
• Development of energy storage systems.
• Demand-side management measures and energy efficiency initiatives.
• Supplier Code of Conduct and social audits.
• Stakeholder engagement and communication.

Supply Chain Management

Supplier Audits: 75 audits conducted

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Opportunities

• Investment in new grid infrastructure to support renewable energy integration.

Reporting Standards

Frameworks Used: GRI, AA1000, IQNet SR10, ISO26000, Global Reporting Initiative

Certifications: ISO 14001, EMAS

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation and infrastructure)
• Goal 13 (Climate action)

The company's activities contribute to these goals through renewable energy integration, grid development, and emission reduction initiatives.

Awards & Recognition

• Top company in the world in sustainability in the Electric Utilities sector by the Dow Jones Sustainability Index
• Gold Class award in 'The Sustainability Yearbook 2018' by RobecoSAM
• Recognition from the Spanish National Institute of Safety, Health and Well-being at Work
• Ágora Bienestar Award 2017

Environmental Metrics

ESG Focus Areas

• Long-term profitable growth
• Accelerate digitalisation
• High client satisfaction
• Leading quality products
• Resource friendly production (energy, water, waste)
• Workplace safety and health
• Agility and empowerment
• Attractive employer
• Sustainable supply chain management
• Fair business practices

Environmental Achievements

• Continuous reduction of resource consumption (electricity, energy, water) and waste per revenue unit.

Social Achievements

• Reduction in work-related accidents, injuries and illnesses
• Strengthening of talent management; comprehensive development discussions; global onboarding processes for new employees; continuous improvement in employee commitment.

Governance Achievements

• No cases of corruption; no cases of legal actions against Datwyler; compliance with the Datwyler Code of Conduct by each and every employee.

Climate Goals & Targets

Environmental Challenges

• Falling demand in the global automotive market, particularly in China
• Delays introducing the very latest automation applications at the new US plant
• Deteriorating general economic situation in the European markets served

Mitigation Strategies

• Early adoption of efficiency-improvement programmes
• Cost-reduction programme
• Consistent and disciplined approach to costs
• New organisational structure to improve market focus, boost core competencies and optimise cost structure

Supply Chain Management

Responsible Procurement

• Code of conduct based on the UN Global Compact

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, UN Global Compact

Environmental Metrics

ESG Focus Areas

• Food safety
• Animal welfare
• Water availability and efficiency
• Climate change
• Greenhouse gas emissions
• Food and nutrition
• Sustainable sourcing
• Responsible and ethical sourcing
• Safety
• Land and biodiversity management
• Environmental compliance
• Waste and packaging
• Energy
• Diversity
• Community contribution

Environmental Achievements

• Waste intensity reduced from our target of 9.69 kg per tonne of product to 8.53 kg per tonne of product
• 48% of water used in manufacturing was reused
• First site third-party certified for sustainable palm oil
• 1,575 tonnes of greenhouse gas emissions offset

Social Achievements

• Launched Employee Wellbeing Indicator survey
• Introduced a new Wellness Portal
• Donated over 57,000 kilograms of products, equating to more than 103,000 meals for Australians experiencing hardship
• Implementation of Responsible Children’s Marketing Initiative and adoption of company action plan
• Launched the group wide Bega Support Fund for employees in need

Governance Achievements

• Adopted Standards of Business Conduct and a revised Code of Conduct
• Ethical sourcing policy launched

Climate Goals & Targets

Environmental Challenges

• Australia's milk pool reduced due to drought conditions
• Increased resource intensity per tonne of product across energy and greenhouse gas emissions
• Safety performance declined from 5.8 to 10.5 TRIFR per million hours worked
• 900,000 litres of milk lost from bushfires
• 15 dairy farmer suppliers impacted by bushfires
• Responding to COVID-19 and mitigating risks to team safety, wellbeing and our business

Mitigation Strategies

• Significantly increased milk payment prices and implemented a range of other initiatives to sustain and grow milk supply
• Implemented a range of policies and practices with our supplier base to identify and mitigate the potential risks to our people and business
• Purchased 1,575 Australian carbon credit units to offset increased emissions
• Engaged DuPont Sustainable Solutions to assess safety culture and determine necessary development plans
• Continued to implement Energy Roadmap by developing site specific energy management plans and explore sustainable energy options
• Completed 80% of planned sub meter installations

Supply Chain Management

Supplier Audits: 90 audits consisting of 149 audit days

Responsible Procurement

• Group Procurement Charter revised to reflect Standards of Business Conduct, revised Code of Conduct and new Ethical Sourcing Policy
• Ethical Sourcing Policy adopted

Climate-Related Risks & Opportunities

Physical Risks

• Drought
• Extreme weather events
• Wildfire
• Bushfires

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards 2016

Certifications: BRC Global Standard for Food Safety

Third-party Assurance: Point Advisory Pty Ltd

UN Sustainable Development Goals

• 2.4
• 3.4
• 5.5
• 6.4
• 10.2
• 12.2
• 12.3
• 13

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

• 40% Less Salt Vegemite
• Vegan certified Vegemite
• HAPPi range of lactoferrin baby and kids supplements
• B honey

Awards & Recognition

• Australian Institute of Training and Development Excellence Awards (Best Talent Development Program)

Environmental Metrics

ESG Focus Areas

• Diversity, Equity and Inclusion
• Community Investment
• Environmental Stewardship

Environmental Achievements

• Partnering with federal, state and local regulatory agencies; educational institutions; industry trade groups; and nonprofit organizations to share information, best-management practices, development of new tools and metrics, and innovative technology that lead to reduction or elimination of environmental impacts.
• Maintaining three responsible forestry certifications: Forest Stewardship Council® (FSC®), Sustainable Forest Initiative (SFI®), and Program for the Endorsement of Forest Certification (PEFC).
• Becoming a founding member of Forests in Focus, a sustainability verification tool that identifies family-owned forests as a source for sustainable wood fiber, the raw material used to make paper and packaging.
• Formulating its own brand of Envirotech™ inks that contain a high percentage of renewable resource (i.e., vegetable) content.
• Developing a co-mailing program that helps consolidate loads of mail and, thereby, reduce greenhouse gas emissions impact by putting fewer trucks on the road.

Social Achievements

• Launched a multi-faceted learning and development program for leaders and employees on diversity, equity and inclusion.
• Continued to support the expansion of employee-led Business Resource Groups, which offer support and development for women, military veterans, LGBTQIA+ and Black employees and their allies.
• Partnering with community organizations to connect underserved populations with education, training, transportation and jobs in Milwaukee.
• Catalyzing change in the marketing and advertising industries to bring diverse voices into the creative profession, including investments in The BrandLab and the Brandcenter at Virginia Commonwealth University.

Governance Achievements

• Maintaining consistent, stable leadership focused on long-term interests.
• Retaining an experienced management team committed to preserving the Company’s values-based culture.
• Maintaining a high standard for corporate compliance and ethical business practices.
• Creating a Supplier Code of Conduct that ensures responsible sourcing with business integrity, ethical labor practices and environmental management policies.

Climate Goals & Targets

Environmental Challenges

• Significant reduction in client demand in 2020 due to the COVID-19 pandemic.
• Ongoing print industry volume and pricing pressures.
• Secular decline of the printing industry accelerated by the COVID-19 pandemic and migration of advertising dollars from print to digital channels.
• Increased business complexity as a result of the Company’s transformation to a marketing solutions partner.
• Heightened competitive pressures in a highly fragmented and competitive printing industry with excess manufacturing capacity.

Mitigation Strategies

• Aggressive actions to realign cost structure and drive productivity improvements.
• Maintaining the health and well-being of employees and providing high-quality, on-time delivery for clients.
• Ensuring the long-term financial health and stability of the Company.
• Continuing to expand marketing solutions with new and existing accounts, providing clients with a simple, efficient, and effective integrated approach.
• Disciplined investments in talent, acquisitions, and technology to expand and strengthen its integrated marketing platform.
• Strategic divestiture of non-core assets (e.g., Book platform) to support the marketing solutions partner strategy.
• Implementing cost reduction and cash conservation initiatives in response to the COVID-19 pandemic (e.g., temporary furloughs, salary reductions, suspension of dividends).

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Envirotech™ inks

Environmental Metrics

ESG Focus Areas

• Environment
• People and Safety
• Community
• Supply Chain

Environmental Achievements

• Completed 2020 environmental goals set in 2009, including a 57% reduction in waste per tonne of saleable product, 32% reduction in emissions, 24% reduction in energy use and 13% reduction in water.
• 11% decrease in total CO2e in 2020
• 5% decrease in total potable water usage in 2020
• 11% decrease in total energy use in 2020

Social Achievements

• Launched a new wellbeing program providing employees with tools to stay well physically and mentally.
• 112 sites achieved zero recordable injuries in YEM21
• $73,580 donated to CSR Community Support program in YEM21

Governance Achievements

• Completed a comprehensive review of the paid parental leave policy with new processes implemented to bring it more in line with market expectations
• Gender pay analysis completed and corrective actions implemented

Climate Goals & Targets

Environmental Challenges

• COVID-19 significantly impacted safety performance, resulting in a decline in TRIFR from 10.2 to 12.8.
• Slowdown in residential construction activity (4% decline).
• Slowdown in medium and high-density markets.
• Decline in aluminium prices at the start of the financial year.

Mitigation Strategies

• Shifted safety agenda to adapt to new guidelines and address transmission risks.
• Strong cost control and operational efficiency offset the impact of the slowdown in residential construction activity.
• Strengthened forward hedge position to lock in future returns for Aluminium.
• Implemented business continuity plans and cost disciplines in response to COVID-19.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• Sustainable procurement strategy (two-year work plan)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 11 (Sustainable Cities and Communities)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 15 (Life on Land)

CSR’s 2030 targets are linked to these SDGs.

Sustainable Products & Innovation

• Bradford glasswool insulation (up to 80% recycled glass)
• Monier roofing tiles (incorporating fly ash)
• Martini acoustic insulation (up to 80% recycled PET)

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainable loan portfolio growth
• Enhanced governance of ESG and climate-related risks and opportunities
• Customer awareness, investor confidence and employee diversity
• Science-based targets
• Impact measurement and reporting

Environmental Achievements

• GEL 750 million sustainable loan portfolio target for 2022 met. Total volume reached GEL 782 million (15.6% growth from 2021)
• Climate-related framework in line with TCFD requirements established
• 98% of Bank employees participated in ESG-related training in 2022

Social Achievements

• Comprehensive ESG training framework covering all employees established
• Diversity, Equality and Inclusion (DEI) Policy, targets and action plan defined
• ESG strategies in all significant subsidiaries developed
• Employee Net Promoter Score (ENPS) of 59% (well above industry average of 47%)
• Annual TBC Business Awards event promoted business activities in Georgia

Governance Achievements

• Comprehensive ESG training framework covering all employees established
• ESG strategies in all significant subsidiaries developed
• Climate-related framework in line with TCFD requirements established

Climate Goals & Targets

Environmental Challenges

• High share of loans denominated in foreign currencies (47.1% as of 31 December 2022)
• Large individual exposures to single-name borrowers
• Potential slowdown in economic growth in Georgia
• Geopolitical instability in neighboring countries
• Regulatory and enforcement action risk
• Financial sanctions risk
• Liquidity risk
• Potential decline in net interest income or net interest margin
• Growing threat of cyber-attacks
• External and internal fraud risks
• Reputational risk
• Risk that strategic initiatives do not translate into long-term sustainable value
• Risk related to attracting and retaining highly qualified employees
• Adverse regional developments (war in Ukraine)
• LIBOR discontinuation and transition
• Risks arising from climate change

Mitigation Strategies

• Conservative lending standards for unhedged foreign currency borrowers
• Diversification of loan portfolio
• Macroeconomic monitoring process
• Stress testing and scenario analysis
• Systems and processes to ensure regulatory compliance
• Strengthened sanctions programme
• Solid liquidity position and outflow scenario analyses
• Diversified funding structure
• Focus on fee and commission income growth
• Updated and enhanced in-depth security strategy
• Security Operations Centre
• Continuous monitoring and prevention of fraud risks
• Strong brand recognition
• Annual strategic review sessions
• Proactive recruitment and employee development
• Stress testing and other risk measurement tools
• Environmental and Social Risk Management (ESRM) Procedures
• Environmental Management System (EMS)

Supply Chain Management

Responsible Procurement

• Environmental and Social Risk Management Questionnaire for suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Rising mean temperatures
• Rising sea levels

Transition Risks

• Regulatory changes
• Technological changes
• Market shifts

Opportunities

• Energy-efficiency loans
• Renewable energy financing

Reporting Standards

Frameworks Used: TCFD, GRI

Certifications: ISO 14001:2015, ISO 27001

Third-party Assurance: PricewaterhouseCoopers Georgia LLC

UN Sustainable Development Goals

• Goal 16

Supporting Ukraine

Sustainable Products & Innovation

• Energy-efficiency loans
• Electric car loans
• Renewable energy financing

Awards & Recognition

• Corporate Responsibility Award 2022 (SDG 16)