Climate Change Data

Environmental Metrics

ESG Focus Areas

• Energy Consumption
• CO2 Emissions
• Diversity
• Occupational Health and Safety
• Compliance
• Service Responsibility
• Charitable Commitment

Environmental Achievements

• Reduced CO2 emissions per employee by 17% compared to 2010.
• Reduced energy consumption per employee by 17% compared to 2010.
• Reduced heating oil consumption in Cologne Business Park by more than half (from 215,715 liters in 2013 to 96,784 liters in 2016).

Social Achievements

• Launched "Do it. Best!" campaign for internal improvement.
• Created twelve new vocational training positions for refugees.
• Continued to be recognized as one of the most attractive employers for engineers in Germany.
• Received the "CSR Jobs Award 2016" in the "Our Values" category.

Governance Achievements

• Established a Group-wide occupational safety reporting system.
• Adopted a new QHSE policy with clearer roles and responsibilities.
• Developed a "Brand Risk Evaluator" to assess service risks to the brand.

Climate Goals & Targets

Environmental Challenges

• Difficult project management business in Brazil due to political and economic crisis.
• Continued low prices in key commodities affecting business in Brazil and North America.
• Intensified competition in the German market.
• Finding sufficient skilled workers.
• Continued consolidation in the TIC industry with price and margin pressure.

Mitigation Strategies

• Restructuring measures in Brazil, including significant capacity reduction.
• Focus on Business Fields with strong growth (Industrial Inspection, Electrical Engineering & Automation).
• Tighter operational and commercial control, sales offensive in Germany.
• High-quality vocational training for young people.
• Investments in innovation and digitalization.

Supply Chain Management

Responsible Procurement

• Suppliers must acknowledge general purchasing terms and conditions, adhering to applicable laws and UN Global Compact principles (in Germany).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Core, UN Global Compact

Certifications: ISO 9001, ISO 14001, OHSAS 18001

Third-party Assurance: KPMG AG Wirtschaftsprüfungsgesellschaft

Sustainable Products & Innovation

• "Green Product" test mark

Awards & Recognition

• Top Employers in Germany
• CSR Jobs Award 2016

Environmental Metrics

ESG Focus Areas

• Compliance
• Employee well-being and diversity
• Environmental protection
• Social commitment
• Service responsibility

Environmental Achievements

• Reduced energy consumption per employee by 23% compared to 2010 (target: -20% by 2020)
• Reduced CO2 emissions per employee by 22% compared to 2010 (target: -25% by 2020)
• Modernization and energy-based renovations at Group headquarters in Cologne, expecting 30% energy savings and CO2 reductions

Social Achievements

• Achieved above-average score in the RACER benchmark in the area of equality
• 27% of top management positions filled by non-Germans (exceeding the 20% target for 2020)
• 15.2% of management positions held by women (achieving the 15% target for 2020)
• Launched diversity campaign “All different. All Precisely. Right.”
• Continued vocational training positions for refugees with mentoring program
• Received “Top Employer” and TOTAL E-QUALITY awards

Governance Achievements

• Established a mandatory e-learning program on compliance for all employees
• Systematically professionalized the worldwide network of compliance officers
• Developed a binding global guideline on business partner management
• No companies in the TÜV Rheinland Group were fined for non-compliance in 2017

Climate Goals & Targets

Environmental Challenges

• Continuing difficult project management business in Brazil due to political and economic crisis
• Price pressure in the oil and gas sector
• Weak orders situation in the IT Services & Cyber Security business field in the US
• Difficulty recruiting skilled employees in Germany
• Risks related to cyber crime and data privacy in the growing smart home market
• Consolidation in the TIC industry with price and margin pressure and increasing competition

Mitigation Strategies

• Implemented efficiency measures, such as converting the oil-fired heating system at headquarters
• Developed and adopted a binding global guideline on business partner management
• Launched the “APT Defense Service” for IT security
• Established the “Competence Center IoT-Privacy” to address data privacy concerns in smart homes
• Implemented a comprehensive internal control system (ICS) and risk management system
• Selective acquisitions on a smaller scale to strengthen market position

Supply Chain Management

Responsible Procurement

• General purchasing terms and conditions requiring adherence to applicable laws and UN Global Compact principles

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS, GRI Standards: Core option, UN Global Compact, Transparency International guidelines

Certifications: ISO 9001, ISO 14001, OHSAS 18001, LEED Gold, DGNB Gold

Third-party Assurance: KPMG AG Wirtschaftsprüfungsgesellschaft

UN Sustainable Development Goals

• SDG 6: Clean Water and Sanitation
• SDG 7: Affordable and Clean Energy
• SDG 8: Decent Work and Economic Growth
• SDG 12: Responsible Consumption and Production
• SDG 15: Life on Land

TÜV Rheinland's services support several SDGs through safeguarding water quality, sustainable forestry, supporting wind farms, auditing social standards, offering training courses, and certifying eco-friendly products.

Sustainable Products & Innovation

• Protected Privacy certificate for smart home solutions
• Green Product mark for eco-friendly and energy-efficient products

Awards & Recognition

• Top Employer
• TOTAL E-QUALITY award
• Human Resources Excellence Award 2017

Environmental Metrics

ESG Focus Areas

• Governance
• Employees
• Environment
• Society
• Service Responsibility
• Compliance
• Data Integrity
• Labor Rights
• Greenhouse gas emissions
• Diversity

Environmental Achievements

• Reduced CO2 emissions by 61% versus 2010 (surpassing the 25% target)
• Reduced energy consumption by 44% versus 2010 (surpassing the 20% target)
• Reduced business travel significantly due to the COVID-19 pandemic and resulting mobile working policy
• Reduced paper consumption through digital signatures (DiSign) in Asia Pacific and IMEA regions
• Building renovation at Cologne headquarters reduced CO2 emissions by about 30 percent versus base year 2014

Social Achievements

• Opened a company childcare center in Cologne in 2015
• Collaborated with Chinese companies to improve the sustainability of the electrical power grid in Yunnan province since 2017
• Launched the “Back to Business” program in June 2020 to guarantee a safer and healthier work environment
• Donated relief supplies to flood victims in Brazil
• Donated protective face masks in Germany and Bangladesh

Governance Achievements

• Adopted globally binding guidelines on business partner management in 2017
• Reissued the Code of Conduct in 2020, aligning it with TIC Council principles
• Established a worldwide network of compliance officers
• Implemented a Groupwide e-learning program on compliance (2,614 employees completed the course in 2020)
• Achieved an above-average EcoVadis CSR rating (Silver Medal)

Climate Goals & Targets

Environmental Challenges

• Coronavirus pandemic impacting business operations and revenue
• Supply chain disruptions
• Decreased demand for certain services due to pandemic-driven changes in shopping behavior
• Maintaining certifications during lockdowns and restrictions on in-person audits
• High employee turnover rate due to organizational changes

Mitigation Strategies

• Established crisis management teams in each region
• Implemented standardized rules of conduct and tools for COVID-19 prevention
• Converted many services to virtual audits
• Launched the “Back to Business” program
• Developed supportive measures for mobile working (e.g., “Mobile Work” app)

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• General terms and conditions of purchase and business requiring adherence to applicable laws and UN Global Compact principles
• Supplier Code of Conduct
• Sustainable Procurement Policy

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN Global Compact

Certifications: ISO 9001, ISO 14001, ISO 45001

Third-party Assurance: KPMG AG Wirtschaftsprüfungsgesellschaft (limited assurance)

UN Sustainable Development Goals

• SDG 3 (Good Health and Well-being)
• SDG 8 (Decent Work and Economic Growth)
• SDG 9 (Industry, Innovation and Infrastructure)

TÜV Rheinland’s services contributed to these SDGs through testing and certification of medical equipment, support for business continuity during the pandemic, and promotion of sustainable business models.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• EcoVadis Silver Medal