Climate Change Data

AFL

Climate Impact & Sustainability Data (2023-04 to 2024-03)

Reporting Period: 2023-04 to 2024-03

Environmental Metrics

Total Carbon Emissions:421,526 tCO2e/year
Scope 1 Emissions:11,219 tCO2e/year
Scope 2 Emissions:17,000 tCO2e/year
Scope 3 Emissions:393,307 tCO2e/year
Renewable Energy Share:26 MWh/year (approximately 0.03% of total energy use)
Total Energy Consumption:97,447 MWh/year
Water Consumption:57,921 m3/year
Waste Generated:9,581 tons/year

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Implemented carbon management and accounting software to analyze and track progress against science-aligned emissions reduction targets.
  • Integrated sustainability throughout the product lifecycle, from new product development to participation in the circular economy.
  • Reduced absolute scope 1 and 2 GHG emissions.
  • Reduced absolute scope 3 GHG emissions from relevant categories.
  • Reduced energy intensity.

Social Achievements

  • Piloted AFL Manufacturing Excellence program to drive continuous improvement in plants, focusing on environmental health and safety.
  • Expanded Learning and Development program, introducing new ways to recognize employee hard work.
  • Associates donated over $750,000 to community organizations and volunteered over 2,000 hours.
  • Implemented Supplier Code of Conduct (SCOC).

Governance Achievements

  • Amended corporate bylaws and several policies to improve governance.
  • Enhanced third-party due diligence programs to reduce supply chain risk.
  • Implemented ethics and compliance training covering various topics, resulting in over 3,600 training hours.
  • Made significant progress toward ISO 27001 certification for data security.

Climate Goals & Targets

Long-term Goals:
  • Net Zero emissions
Medium-term Goals:
  • Reduce absolute Scope 1 and 2 GHG emissions 50.4% by FY2032
  • Reduce absolute Scope 3 GHG emissions 30% by FY2032
Short-term Goals:
  • Reduce energy intensity by 10% by FY2027
  • Reduce water use intensity 5% by FY2027

Environmental Challenges

  • Challenging market conditions.
  • Global supply chain challenges.
  • Increasing requirements related to climate and target-setting from customers and regulations.
Mitigation Strategies
  • Developed alternative sourcing strategies.
  • Enhanced third-party due diligence programs.
  • Investing in the climate transition, such as reducing building and fleet energy consumption.
  • Reducing the impacts of our products to partner with customers for mutual benefit.

Supply Chain Management

Responsible Procurement
  • Supplier Code of Conduct (SCOC)
  • Supplier Sustainability/Environmental Questionnaire
  • Assessment of critical suppliers

Climate-Related Risks & Opportunities

Transition Risks
  • Current and emerging regulation and climate-related standards
  • Market and reputational risks related to changing customer behavior
Opportunities
  • Investing in the climate transition to manage costs and emissions.
  • Reducing product impacts to partner with customers.

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 14001:2015 (12 sites)

Sustainable Products & Innovation

  • Modular Connectivity Solutions
  • Ultra Dense Cable, Ultra Dense Closure and Collapsible Vault for Access Networks

Awards & Recognition

  • 2023 Rising Star award for Most Sustainable Organization from EnergyCAP
  • Four Gold awards for exceptional safety performance from North Carolina OSHA Division