Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• People
• Sustainable Management

Environmental Achievements

• Reduced total energy consumption from 423,533 MWh in 2019 to 379,835 MWh in 2020 due to lower production rates and implemented efficiency measures.
• Reduced product-related CO2 emissions by over 200,000 t thanks to weight savings.
• Increased share of renewable energy in power consumption to 26% and 15% in total energy consumption.
• Implemented measures to reduce GHG emissions beyond CO2, including using low-emission cathodic dip painting and replacing refrigerants in climatic chambers with CO2.
• Installed an energy-efficient servo press at the Coburg location, resulting in a 77% reduction in power consumption.
• Implemented more than 45 individual measures to increase energy efficiency in production locations.
• Reduced water consumption from 746,154 m3 in 2019 to 745,270 m3 in 2020.
• Implemented a wastewater-free surface coating system at the Taicang (China) plant, reducing fresh water requirement by around 75%.

Social Achievements

• Received several domestic and international employer awards, including ranking among top employers in Germany and Mexico.
• Implemented a new remuneration system for senior managers, harmonizing compensation components and increasing transparency.
• Optimized workflows in the internal labor market, resulting in over 550 employees taking on new assignments.
• Introduced the “PTM for Workers” qualification program to discover and promote specialists and managers in production.
• Expanded the range of dual vocational training programs to include “Data Science” and “Embedded Systems” specializations.
• Opened a modern training workshop at the Slovakian plant in Prievidza, training over 80 aspiring mechatronics technicians and industrial mechanics.

Governance Achievements

• Reorganized Brose Sustainability Management, creating a new Chief Corporate Responsibility Officer (CCRO) position and an interdisciplinary CR Board.
• Adopted a Brose Group sustainability strategy in February 2021, outlining commitments to environmental protection, employee responsibility, social responsibility, and a Code of Conduct.
• Supplemented the Compliance Management System using the ISO 37301 standard for orientation purposes.
• Introduced a web-based whistleblower system in 17 languages.

Climate Goals & Targets

Environmental Challenges

• Lower production rates during the coronavirus pandemic impacting energy consumption and emissions.
• Switch from renewable to fossil fuels in the Czech Republic increasing Scope 2 emissions.
• Need to further reduce water consumption and effluent discharge.
• Need to further improve supplier sustainability performance.

Mitigation Strategies

• Implemented efficiency measures to reduce energy consumption.
• Developing new water-saving technologies and concepts.
• Working with suppliers to improve their sustainability performance through training and workshops.
• Implementing the Brose Transport Management (BTM) system to optimize logistics and reduce transport emissions.

Supply Chain Management

Supplier Audits: 24 technology audits for new suppliers and 13 VDA-based process audits among existing suppliers in 2020.

Responsible Procurement

• Code of Conduct for Suppliers
• VDA project group “Corporate Sustainability Assessment Exchange” (COSAX)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and lightweight design.

Reporting Standards

Frameworks Used: GRI Standards: ‘Core’ option

Certifications: ISO 14001, ISO 50001, IATF 16949

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Lightweight door systems
• Smart Interior Actuator
• Lumbar support
• FlexBlade cooling fan wheels
• BM2010 Drives window regulator motors

Awards & Recognition

• Top 100 employers in Germany
• Focus Magazine Survey of Top Automotive Employers in Germany (2nd place)
• Stern magazine ranking among best 500 employers in Germany
• Focus Business and kununu ranking among top industrial companies
• Top Employer for IT Jobs (2nd place)
• BEST RECRUITERS 2019/20 (1st place in Automotive/Vehicle category)
• Querétaro El Marqués plant named “Best Company 2020” in Mexico
• Brose North America certified for outstanding candidate experience

Environmental Metrics

ESG Focus Areas

• Environment
• People
• Sustainable Management

Environmental Achievements

• Reduced product-related CO2 emissions by 242,904 t CO2 annually from 2019 to 2021 (3.1% of annual product-related CO2 emissions)
• Reduced energy consumption by 3% over a three-year period (2019-2021)
• Implemented 36 individual measures to increase energy efficiency in production locations
• Achieved remarkable savings in 2021 thanks to efficiency measures
• Replaced refrigerants in climatic chambers with CO2, reducing global warming potential

Social Achievements

• Implemented Global Job Architecture (GJA) project for uniform job descriptions
• Expanded family care services for employees
• Launched e-bike leasing campaign for employees
• Won 1st place in the “German Ideas Management Award” for a UVC lamp designed for disinfection

Governance Achievements

• Adopted Brose Group’s sustainability strategy in February 2021
• Expanded Compliance Management System using ISO 37301 standard
• Introduced web-based whistleblower system “WhistleB” in 17 languages

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Implementing new technical standards in HR
• Achieving CO2 neutrality

Mitigation Strategies

• Participation in industry initiatives to improve supply chain transparency
• Regular benchmark meetings with leading businesses
• High-quality offset projects for CO2 neutrality

Supply Chain Management

Supplier Audits: First audits planned for 2022 according to RSCI standard

Responsible Procurement

• Brose Code of Conduct for Suppliers
• Sustainability standards for awarding contracts
• Regular progress checks with suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and processes

Reporting Standards

Frameworks Used: GRI Standards: ‘Core’ option

Certifications: ISO 14001, ISO 50001 (selected locations), IATF 16949

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Aligns efforts with the principles of the “UN Global Compact” and the Sustainable Development Goals outlined in the United Nation’s Agenda 2030

Sustainable Products & Innovation

• Lightweight structural module for organo sheet door modules
• Intelligent material combinations for seat structures
• FlexBlade design for cooling fan wheels
• Additive manufacturing for metal components

Awards & Recognition

• 1st place in the “German Ideas Management Award”

Environmental Metrics

ESG Focus Areas

• Environment
• People
• Sustainable Business Practices

Environmental Achievements

• Reduced product-related carbon emissions by 345,356 t of CO2 in 2022 (4.1% of annual emissions)
• Reduced energy consumption by 1.2 GWh annually through various efficiency measures.
• 77% reduction in energy consumption exceeding expectations.
• Implemented CO2 refrigerant in climatic chambers, reducing global warming potential by 228 t CO2 equivalents.

Social Achievements

• Revised Brose Code of Conduct to include fairness and diversity, and protected characteristics against discrimination.
• Implemented “Upskilling Blue Collars” project for systematic development of manufacturing employees.
• Launched “FamilyNet” project to support employees and their families.
• Offered over 17,000 internal training courses (indirect employees).

Governance Achievements

• Expanded Compliance Management System using IDW PS 980 standard.
• Established a Compliance Committee.
• Revised Brose Code of Conduct, including updates on export controls, information security, and money laundering.

Climate Goals & Targets

Environmental Challenges

• Reducing waste generation at production locations.
• Reducing water consumption in surface technology.
• Meeting sustainability requirements in the supply chain.

Mitigation Strategies

• Implementing waste prevention and reduction projects.
• Developing a new wastewater concept for surface coating systems.
• Implementing Brose sustainability standards for suppliers, conducting supplier surveys, and providing training courses.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Brose Code of Conduct for Suppliers
• Brose sustainability standards
• Participation in RSCI (Responsible Supply Chain Initiative)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Lightweight design, energy-efficient technologies.

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001, ISO 50001, IATF 16949, TISAX (Level 2 at 17 locations)

Third-party Assurance: Not disclosed

Sustainable Products & Innovation

• Lightweight components
• Recycled materials
• Additive manufacturing

Awards & Recognition

• German Award for Sustainability Projects (for RSCI)
• Responsible Use of Water Resources award (Querétaro plant)
• Safe Company Award (Ostrava)
• ROSPA Silver Award (Coventry)
• Nissan Sustainability Award (Door systems business division)