Vossloh AG

Climate Impact & Sustainability Data (2020, 2022, 2024-01-01 to 2024-09-30)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:15,935.6 t CO2e (Scope 1) + 28,937.9 t CO2e (Scope 2)

Scope 1 Emissions:15,935.6 t CO2e

Scope 2 Emissions:28,937.9 t CO2e

Total Energy Consumption:72,268.5 MWh (Gas) + 64,175.1 MWh (Electricity) + 4,384.2 MWh (District heating) + 228,862.0 Liters (Heating oil) + 1,828,094.1 Liters (Fuel)

Water Consumption:177,553.1 m³

ESG Focus Areas

Human rights
Labor standards
Environmental protection
Anti-corruption

Environmental Achievements

72 percent of the Vossloh workforce was employed at a unit with ISO 14001 certification.
Targeted investments to reduce energy consumption and boost energy efficiency.
Use of waste heat from production; renewable energies used from company's own photovoltaic and solar thermal systems.

Social Achievements

Close cooperation with employee representatives.
Fair remuneration, additional company benefits, safe work environment and preservation of employee health.
Diversity and inclusion policy in development; "All on Track" initiative launched.

Governance Achievements

Established a Compliance-Management-System (CMS).
Compliance training conducted for 309 participants.
Whistle-blower hotline established.

Climate Goals & Targets

Medium-term Goals:

Climate neutrality in Europe by 2030 (scopes 1 and 2)

Environmental Challenges

COVID-19 pandemic impacted operations and training.
Insufficient data to ascertain scope 3 greenhouse gas emissions.
Postponement of risk inventory update due to the pandemic.

Mitigation Strategies

Virtual training courses implemented to partially compensate for on-site training limitations.
Ongoing efforts to improve data collection for scope 3 emissions.
Planned to conduct postponed risk inventory update and compliance audits in 2021.

Supply Chain Management

Responsible Procurement

Vossloh Code of Conduct applied to major partnership contracts and contracts with intermediaries.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: ISO 14001, OHSAS 18001/ISO 45001

UN Sustainable Development Goals

SDG 5
SDG 6
SDG 8
SDG 9
SDG 12
SDG 13

The Group focuses its commitment on the six of the total 17 SDGs that are particularly relevant to Vossloh’s business activities.

Sustainable Products & Innovation

Cellentic components and rail fastening systems with high plastic content
Whisper switches
Rail machining technologies (grinding, milling)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:19,318.8 tCO2e (Scope 1) + 25,533.8 tCO2e (Scope 2) in 2022

Scope 1 Emissions:19,318.8 tCO2e

Scope 2 Emissions:25,533.8 tCO2e

Scope 3 Emissions:Not disclosed

Renewable Energy Share:Not disclosed

Total Energy Consumption:149,000 MWh (approx.) in 2022

Water Consumption:177,797.6 m3 in 2022

Waste Generated:Not disclosed

Carbon Intensity:42.9 tCO2e/€ million in 2022

ESG Focus Areas

Climate change
Sustainable mobility
Occupational health and safety
Human resources and leadership
Responsible supply chains
Business ethics and human rights

Environmental Achievements

Reduced CO2e intensity by 14.9%
Achieved 64% taxonomy-aligned sales revenues (EU Taxonomy)
100% of sales revenues are taxonomy-eligible (EU Taxonomy)
Increased share of green energy use across several sites
Launched initiatives to reduce energy consumption and CO2e emissions
Developed innovative composite ties (EPS) as a sustainable alternative to wooden ties

Social Achievements

Reduced lost time accident frequency rate (LTAFR) by 17.1%
Reduced lost time accident severity rate (LTASR) by 42.9%
Launched Group-wide corporate volunteering program
Implemented a new value-based Vossloh leadership principles
Implemented a Group-wide diversity, equality and inclusion policy
Improved work-life balance initiatives in France and Germany
Launched the “All on track” initiative to promote gender equality

Governance Achievements

Established a Group-wide risk and opportunity management system
Implemented a Compliance Management System
Established a whistleblower hotline
Revised and enhanced the Vossloh Code of Conduct
Conducted regular compliance training for employees
Published Responsible Sourcing Commitment

Climate Goals & Targets

Long-term Goals:

Not disclosed

Medium-term Goals:

Achieve CO2e neutrality (Scope 1 and 2) by 2030

Short-term Goals:

Reduce workplace accidents by 20% annually
Increase sustainable strategic sourcing volume to 90% by 2025

Environmental Challenges

Supply chain disruptions due to the war in Ukraine
Significant rise in procurement prices for materials and energy
Ongoing repercussions of the COVID-19 pandemic
Increased competition in the rail infrastructure sector
Shortage of skilled workers

Mitigation Strategies

Approved alternative suppliers
Continuously analyzing the energy market and implementing suitable risk reduction measures
Implemented cost reduction measures
Improved vertical integration in selected areas
Positioning the company as an attractive employer
Implemented a range of training activities

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

Responsible Sourcing Commitment
Vossloh Code of Conduct for Business Partners
Ban on conflict minerals (3TG)

Climate-Related Risks & Opportunities

Physical Risks

Not disclosed

Transition Risks

Not disclosed

Opportunities

Not disclosed

Reporting Standards

Frameworks Used: GRI, EU Taxonomy Regulation

Certifications: ISO 9001, ISO 14001, ISO 50001, OHSAS 18001, ISO 45001

Third-party Assurance: Deloitte GmbH Wirtschaftsprüfungsgesellschaft

UN Sustainable Development Goals

SDG 5
SDG 6
SDG 8
SDG 9
SDG 12
SDG 13

Vossloh's initiatives contribute to these goals through various ESG programs and sustainable business practices.

Sustainable Products & Innovation

Engineered Polymer Sleeper (EPS)
M-generation tension clamp
Cellentic intermediate layers
CogX heat-treated laminated steel

Awards & Recognition

Training Company 2022 (Germany)

Reporting Period: 2024-01-01 to 2024-09-30

Environmental Metrics

ESG Focus Areas

Sustainability
CO2 footprint reduction
Circular economy
Employee well-being

Environmental Achievements

Rail fastening systems with CO2 footprint reduced by up to 65 percent
Environmentally friendly under sleeper pads
World's first crossing made of recycled manganese steel
Self-developed composite sleeper EPS as an environmentally friendly alternative to wooden sleepers
Awarded gold by EcoVadis (top 4% of all companies rated)

Social Achievements

Participation in the final of the German Sustainability Award (DNP)
Completed consultation process with employee representatives in France for Sateba acquisition

Governance Achievements

Acquisition of Sateba Group
Submission of all applications for antitrust and investment control approvals for Sateba acquisition

Climate Goals & Targets

Medium-term Goals:

Sales revenues to exceed €2 billion in 2030
Long-term profitability target of a double-digit EBIT margin by 2030
Working capital intensity of less than 15 percent by 2030

Environmental Challenges

Lower sales revenues in China and Mexico
Higher weighted average cost of capital (WACC)

Mitigation Strategies

Expected sales gap to be largely closed in Q4/2024
Cash4Growth program to contribute to lower working capital intensity and higher free cash flow