Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Safety
• Health and Wellbeing
• Waste Management
• Energy Efficiency
• Responsible Sourcing
• Human Rights
• Governance
• Supply Chain Sustainability

Environmental Achievements

• Improved energy intensity ratio by 22% from FY2019
• 90% of solid waste recycled
• 7 out of 19 factories operating with zero waste to landfill
• Henggang plant achieved 17% reduction in water consumption
• Zhongshan plant sourcing 25% of electricity from green tariff since January 2023
• 90% of operational lighting uses LED technology

Social Achievements

• Accident frequency rate reduced to 1.24 accidents per million hours worked (from 1.75 in FY2022)
• Reduced employee turnover and absence rates
• Trialing a global employee engagement index
• Increased number of sites with ISO 9001, ISO 14001, and ISO 45001 certifications
• Investment in e-learning programs on export trade controls, modern slavery, and cybersecurity

Governance Achievements

• Established a Global Sustainability Steering Committee (GSSC) reporting to the Board
• Completed first materiality assessment
• Completed a TCFD pre-disclosure assessment
• Board approval for Net Zero ambitions by 2035 for scope 1 and 2 emissions and 2050 for total emissions
• Formalized a comprehensive environmental policy with 16 commitments

Climate Goals & Targets

Environmental Challenges

• Increasing absolute emissions due to business growth
• Understanding and managing Scope 3 emissions
• Managing a complex supply chain ecosystem
• Ensuring consistent ESG data capture across all operations

Mitigation Strategies

• Decoupling growth from adverse environmental impacts
• Implementing a global sustainability reporting platform (V-SRS)
• Collaborating with suppliers on sustainable practices (RBA)
• Detailed review of Scope 3 emissions planned for FY2024
• Implementing a factory sustainability framework to encourage local improvement actions

Supply Chain Management

Supplier Audits: 112 key supplier audits conducted in FY2023

Responsible Procurement

• Responsible Minerals Policy
• Modern Slavery Policy

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Energy price volatility

Opportunities

• Increased use of renewables
• Improved energy efficiency

Reporting Standards

Frameworks Used: TCFD, SASB, UN SDGs, SBTi, GRI

Certifications: ISO 9001, ISO 14001, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 13 (Climate Action)

Aligned sustainability strategy with UN SDGs; net-zero ambition; focus on renewable energy, energy efficiency, and waste reduction.

Sustainable Products & Innovation

• Products free from MCCP, phthalates, lead, DINP, and halogen-free cables

Awards & Recognition

• Volex Site Excellence Awards (Henggang plant)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Health and Safety
• Water Use
• Waste Management
• Diversity & Inclusion
• Supply Chain Sustainability
• Human Rights
• Responsible Procurement
• Labor Standards

Environmental Achievements

• 28% reduction in carbon intensity since FY2019
• 8.4% reduction in carbon intensity in FY2024
• 172% increase in renewable energy use compared to FY2023
• 153 tCO2e emissions avoided through on-site solar generation in FY2024
• 13% improvement in water use intensity
• 82% recycling rate (all 28 factories)

Social Achievements

• Launched global policy on Environmental Management and Responsible Water Use
• 119,800 hours of employee training (9 hours per person)
• 10 factories (36% of total, 51% of workforce) achieved ISO 45001 certification
• $40,907 donated to charities in FY2024

Governance Achievements

• Updated Supplier Code of Conduct
• Developed sustainable procurement policy
• Implemented Speak Up whistleblowing system globally
• Completed anti-bribery and anti-corruption training for 494 employees
• Completed modern slavery and human trafficking training for 426 employees

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Inflationary pressures
• Customer destocking
• Cybersecurity threats
• Maintaining high safety standards in newly acquired Murat Ticaret operations
• Reducing scope 3 emissions
• Sourcing energy responsibly
• Scaling up on-site solar power generation
• Reducing reliance on backup diesel generators

Mitigation Strategies

• Effective communication and close collaboration with customers
• Passing through inflationary costs to customers
• Increased vertical integration and supplier diversification
• Investment in cybersecurity measures
• Implementation of Volex safety standards in Murat Ticaret operations
• Development of a decarbonisation roadmap and science-based targets
• Increased use of on-site solar generation
• Energy efficiency initiatives
• Supplier engagement on sustainability

Supply Chain Management

Supplier Audits: Regular audits conducted

Responsible Procurement

• Supplier Code of Conduct
• Sustainable procurement policy (under development)

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Storms
• Sea level rise
• Drought
• Wildfires
• Precipitation stress

Transition Risks

• Carbon pricing
• Failure to meet ESG expectations

Opportunities

• Growth in electrification markets
• Improved resource efficiency
• Energy transition

Reporting Standards

Frameworks Used: TCFD, UN SDGs, GRI, CDP

Certifications: ISO 9001, ISO 14001, ISO 45001, IATF 16949, ISO 13485, MedAccred, AS 9100D

Third-party Assurance: Carbon Footprint Ltd (limited assurance)

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 5
• SDG 8
• SDG 10
• SDG 13

Volex's initiatives contribute to these goals through various programs and policies related to health and well-being, education, gender equality, decent work, reduced inequalities, and climate action.

Sustainable Products & Innovation

• Bio-based power cord (DE-KA)

Awards & Recognition

• Financial Times Europe’s Climate Leaders 2024
• Volex Site Excellence Awards