Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental sustainability
• Employee well-being
• Responsible production processes

Environmental Achievements

• Polydesign’s installation of a 1.24 MW solar generation plant at its Morocco facility.
• Substantial investments in new, energy-efficient equipment.
• Employing lean manufacturing principles to reduce waste.
• Incorporating closed-fluid collection systems and recycling processes.
• Minimizing material use through additive manufacturing.

Social Achievements

• Commitment to operating in a socially conscious manner and taking care of employees.
• Several businesses achieved ISO 14001 certification.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Global microchip shortages impacting OEM vehicle production.
• Significant inflationary pressures.
• Widespread labor shortages.
• Logistical hurdles and rising energy costs.
• Supply chain challenges due to COVID-19 and the Russia-Ukraine war.
• Energy crises and weak economic conditions in Europe.

Mitigation Strategies

• Acquisition of Halex’s extrusion die business.
• Significant productivity gains.
• Sizeable capital investments.
• Price increases and efficiency initiatives.
• Sharing best practices and leveraging global scale (post-Halex acquisition).
• Investing in new energy-efficient heat treatment plant and equipment.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Lightweight materials (Neocon floormats)
• 3D printed tooling components

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Decarbonization of the sectors we serve
• Responsible use of resources
• Climate risk management
• People and communities
• Governance

Environmental Achievements

• Installation of 1.24 MW solar generation plant at Polydesign facilities, saving emissions of 1200 tons of CO2 in 2023 fiscal year.
• Neocon received the Mobius Award for pioneering performance in recycling practices and technologies, diverting 1,171,094 kg of plastic waste and 101,897 kg of wood pellets from landfills in 2022.
• Several businesses achieved ISO 14001 certification.

Social Achievements

• Polydesign achieved gender parity in its engineering ranks in 2023, with women representing 54% of its engineers.
• Implemented several initiatives to improve employee health and wellness at Polydesign, including healthy meals, shuttles, workshops, and green zones.
• Polytech hosts an annual Health, Safety and Environment Week for its employees.
• Significant investments in training and development, including scholarships for employees and apprenticeships.

Governance Achievements

• Implemented robust entity-wide Corporate Responsibility Policies and a comprehensive entity-wide Supplier Code of Conduct.
• Established Exco Alertline for anonymous reporting of ethical concerns.

Climate Goals & Targets

Environmental Challenges

• Climate-related risks to facilities, including sea level rise, extreme weather, and water stress.
• Uncertainty regarding future climate policies and potential costs or operational changes.
• Cyber incident affecting three production facilities in January 2023.

Mitigation Strategies

• Monitoring climate risks and adapting operations.
• Monitoring climate policies and ensuring readiness for changes.
• Immediate steps to secure systems and mitigate impact of cyber incident, retaining independent experts.

Supply Chain Management

Responsible Procurement

• Comprehensive entity-wide Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Sea level rise and coastal flooding
• More frequent and intense weather events
• Extreme heat
• Water stress

Transition Risks

• Future climate policies and potential costs or operational changes

Opportunities

• Growth opportunities in the decarbonization of the transportation sector

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol, TCFD

Certifications: ISO 14001, ISO 45001 (Polydesign)

UN Sustainable Development Goals

• SDG 1
• SDG 3
• SDG 4
• SDG 5
• SDG 8
• SDG 10
• SDG 12
• SDG 13

Exco's commitment to decent work opportunities, human rights, social justice, economic advancement, responsible production processes, climate action, and other relevant goals.

Sustainable Products & Innovation

• Neocon’s climate positive bio-based thermoplastic
• Neocon’s TPR product that is 45% lighter than a traditional TPE alternative
• Polydesign’s use of lighter weight plastic injection molded substrates

Awards & Recognition

• 2019 Automotive News PACE award
• Neocon’s Mobius Award

Environmental Metrics

ESG Focus Areas

• Marketplace: Leader in innovation for vehicle light weighting and sustainable production processes
• Environment: Responsible use of resources, including energy efficiency, waste management, use of recycled materials and a focus on clean energy
• People: Diversity and inclusion, health and safety, training and development, fair labor practices
• Society: Giving back to local communities
• Governance: Board diversity and balanced oversight

Environmental Achievements

• Castool Heat treatment - Situated within our existing Newmarket facility, phase 1 of this project was completed in the third quarter of Fiscal 2022. Phase 2 is expected to be completed in the second quarter of Fiscal 2023. This facility gives us the ability to process regular and oversized components, ensure faster delivery to our customers, increase quality control, mitigate risks of relying on a third-party supplier for an essential process and the energy efficient equipment reduces the Company’s carbon dioxide footprint.

Social Achievements

• Exco believes employee relations are good with the Mexico and Brazil employees subject to collective bargaining agreements. The Company provides rewards to these employees through a combination of financial benefits and personal recognition. At several Exco locations where design and engineering capabilities are integral parts of the business model Exco encourages further education of employees and is an active participant in apprenticeship programs. In addition, the Company co-operates with and supports several local community colleges and universities from which it typically draws its design engineers.

Governance Achievements

• Audit Committee is composed of Colleen McMorrow, Edward Kernaghan, and Robert Magee. The Committee is chaired by Ms. McMorrow. All members have been determined to be independent and financially literate by the Board of Directors.

Climate Goals & Targets

Environmental Challenges

• Fluctuations of the Euro against the US dollar makes their exports to North America more competitive.
• Direct competition from Chinese die-cast mould manufacturers is increasing as Chinese workshops scale to service North American EV markets but tariffs, shipping distance and costs, and ESG concerns mitigate the threat at this time.

Mitigation Strategies

• In recent years, duties on imports of steel into the USA were implemented. The status of these duties is changing frequently, and the Company monitors these changes. Similar to raw material price increases, the Company passes these duties on to customers wherever possible.
• The Company estimates that the extrusion tooling market in North America and Europe is approximately $US 650 million annually. Exco believes that it is currently the largest supplier in the Canadian and U.S. extrusion tooling markets, the second largest supplier in Europe and that it accounts for approximately 20% of sales in these key markets.

Supply Chain Management

Climate-Related Risks & Opportunities