Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Operational Excellence
• Internationalization
• Innovation
• Employee Wellbeing
• Compliance

Environmental Achievements

• Reduced CO2 emissions to 16,686 tons in 2013 (from 19,976 tons in 2012) primarily due to green electricity use and energy efficiency measures.
• Reduced non-hazardous waste to 779 tons (from 960 tons in 2012).

Social Achievements

• Lower employee turnover rate of 2.9% (from 3.2% in 2012).
• Investment in employee education and further training (around €1.9 million).

Governance Achievements

• Successful conclusion of a five-year syndicated loan agreement for €120 million.
• Implementation of a web-based compliance training course for all employees.
• Introduction of a new supplier code of conduct.

Climate Goals & Targets

Environmental Challenges

• Weak markets in other European countries and parts of Asia.
• Falling defense budgets in industrialized nations.
• Skills shortages and competition for qualified employees.

Mitigation Strategies

• Revenue increases in America and Germany.
• Expansion of international sales and service structures, particularly in North America.
• Series of HR and incentivization measures to attract and retain employees.
• Go-Lean program for process improvements and increased operational performance.
• Jenoptik One ERP (JOE) project for process standardization and efficiency gains.

Supply Chain Management

Responsible Procurement

• Global Sourcing Project
• Purchasing Academy
• Material Group Purchasing
• Supplier code of conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Certifications: ISO 9001, ISO 14001, ISO 13485, ISO/TS 16949, EN 9100, IRIS

Third-party Assurance: KPMG AG Wirtschaftsprüfungsgesellschaft

Sustainable Products & Innovation

• Energy-efficient LED lighting
• High-power diode lasers
• Laser systems for material processing

Awards & Recognition

• manager-magazin award for best TecDax annual report 2012

Environmental Metrics

ESG Focus Areas

• Employee Matters
• Environmental Matters
• Social Commitment
• Human Rights
• Anti-Corruption
• Corporate Culture
• Innovation & R&D
• Supply Chain Management
• Brand & Reputation
• Quality Management

Environmental Achievements

• Increased proportion of green electricity used at main production sites to 45.3% in 2018 (aiming for 70-80% by 2022)
• Completed infrastructure project at Jena site improving energy efficiency (renewal of ventilation system, exhaust air purification, heat recovery)
• Roof refurbishment at another Jena production complex improving energy efficiency
• Analysis of plant technology energy efficiency at Jena-Göschwitz site for future improvements

Social Achievements

• Improved employee engagement score by 4 percentage points to 72%
• Improved Net Promoter Score to 69%
• Increased number of trainees taken on to 65 (prior year 38)
• Launched group-wide “Mitarbeiter im Ehrenamt” (Employees and Volunteering) program
• Reduced number of reportable workplace and commuting accidents in Germany to 10.72 per 1,000 employees (prior year 12.42)

Governance Achievements

• Revised group guidelines in 2019, providing a globally uniform framework for compliance
• Expanded and internationalized compliance organization in 2019, including regional compliance officers in North America and Asia/Pacific
• Implemented a two-step supplier compliance process (supplier declaration and code of conduct)

Climate Goals & Targets

Environmental Challenges

• Increasing requirements for CO2 emission reduction
• Increasing transparency requirements regarding human rights
• Need for higher standards of due diligence in the supply chain

Mitigation Strategies

• Aiming to increase the proportion of green electricity used at main production sites to 70-80% by 2022
• Expanding vehicle fleet to include vehicles with alternative drive systems and creating charging infrastructure
• Implementing higher standards of due diligence to increase transparency in the supply chain

Supply Chain Management

Responsible Procurement

• Code of Conduct for Suppliers
• Corporate Social Responsibility Supplier Self-Assessment (CRSA)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standard 103

Certifications: ISO 9001, ISO 14001, ISO 50001, EN 9100, ISO 13485, ISO/TS 16949, IRIS, ILO-OSH-2001/OHSAS 18001 or DIN ISO 45001, AQAP 2110/2210

Sustainable Products & Innovation

• Diode lasers and laser machines (energy efficient)
• Optical systems and components (resource-friendly)
• Metrology systems (contribute to fuel efficiency)
• Hybrid power generation systems (reduce fuel consumption)
• Traffic monitoring systems (improve traffic flow, reduce emissions)

Environmental Metrics

ESG Focus Areas

• Corporate Culture
• Diversity
• Innovation
• Reduction of CO2 emissions
• Sustainable supplier management

Environmental Achievements

• Group-wide CO2 emissions decreased in 2019 by 20.9 percent to 10,161 tons (2018: 12,843 tons).
• Significant energy savings were realized through the introduction of peak load and shutdown management, compressed air control and the use of LED lighting systems.
• The use of drinking water dispensers in conjunction with reusable drinking bottles has replaced costly ordering of mineral water, while also saving on transport costs and transport emissions.
• In Germany, waste types in all divisions are systematically recorded, categorized and their quantities calculated. In the 2020 reporting year, the volume of hazardous waste disposed of in waste treatment / disposal plants reduced to 106 tons (prior year: 160 tons / 2018: 162 tons) particularly in the Light & Optics division and VINCORION due to optimization measures in waste management.

Social Achievements

• The engagement of our employees, the so-called “Engagement Score” improved by 4 percentage points to 76 percent (prior year: 72 percent).
• With a “Net Promoter Score” of 74 percent (prior year: 69 percent) significantly more than two thirds of our employees would recommend Jenoptik as a good employer.
• The diversity rate, i.e. the average percentage of managers with an international background and female managers, is to increase to 30 percent by 2022 and to 33 percent by 2025. In the past fiscal year 2020, the diversity rate was already increased to 27.8 percent (prior year: 25.5 percent).
• In 2020, Jenoptik invested around 2.2 million euros (prior year: 2.6 million euros) in the professional development of its employees.

Governance Achievements

• A new structure for group guidelines was introduced in 2020. The revised version reduces the scope of content regulated at group level and, for the first time, provides a globally uniform framework which can be supported with more detailed regulations.
• A non-financial reporting system was set up in 2020 for the recording of all non-financial KPIs group-wide. It was integrated into our existing financial reporting system LucaNet.
• Respect for human rights is a high priority for Jenoptik, especially in the supply chain.
• Jenoptik fights all forms of active and passive corruption and expects all its business partners to do the same.

Climate Goals & Targets

Environmental Challenges

• The requirements in connection with the goal of international climate policy to limit global warming are constantly rising, and companies are increasingly being called upon to contribute actively to the reduction of CO2 emissions.
• Sporadic supply bottlenecks in connection with the coronavirus pandemic were offset by targeted supplier management measures.
• The coronavirus pandemic impacted some social commitment projects.

Mitigation Strategies

• We at Jenoptik therefore want to increase the proportion of green electricity used at our main production sites worldwide to 70 percent by 2022, and to 75 percent by 2025 of our total electricity requirements, expand our vehicle fleet to include vehicles with alternative drive systems and create an appropriate infrastructure at our sites for charging all battery-powered vehicles.
• Targeted supplier management measures were implemented to offset supply bottlenecks.
• Jenoptik redirected some of its commitment to the promotion of pandemic-related projects.

Supply Chain Management

Responsible Procurement

• Corporate Social Responsibility Supplier Self-Assessment (CRSA)
• Code of Conduct for Suppliers to the Jenoptik Group

Climate-Related Risks & Opportunities

Physical Risks

• Plant damage due to extreme weather events or losses due to long periods of drought

Transition Risks

• Political/regulatory risks (e.g. rising prices for CO2 emissions), legal risks (e.g. liability suits for climate damage), market risks (e.g. falling demand for fossil fuels), technology or competitive risks (e.g. outdated environmental technology), and risks to reputation (e.g. changing consumer preferences) in response to climate change

Reporting Standards

Frameworks Used: GRI Standard 103

Certifications: ISO 14001, ISO 9001

Sustainable Products & Innovation

• Jenoptik diode lasers and laser machines
• Optical systems and components for information and data transmission as well as medical diagnostic procedures
• Metrology – systems and equipment to check shape and roughness
• Hybrid power generation systems

Awards & Recognition

• Rising Star of the Year (2021)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Responsible Governance
• Employee Well-being
• Supply Chain Responsibility

Environmental Achievements

• CO2 reduction of 50.5% by 2023 (compared to 2019 baseline), exceeding the initial target of 30%
• 93.6% green electricity usage in 2023, exceeding the target of 90%

Social Achievements

• Employee engagement score of 75%, above the global benchmark
• Fluctuation rate of 5.8% in 2023, below the target of 10%
• €2.9 million invested in HR development and training in 2023
• Diversity rate of 29.4% in 2023, aiming for 33% by 2025

Governance Achievements

• CSR rate of 49% in 2023, aiming for 50% by 2025
• ISO 27001 certification for Jenoptik IT system in 2023
• Implementation of the LkSG / supply chain act is underway
• UN Global Compact signatory since 2021

Climate Goals & Targets

Environmental Challenges

• Weaker demand in Optical Test & Measurement and certain life science applications
• Project postponements impacting Non-Photonic Portfolio Companies
• Geopolitical risks (Ukraine conflict, sanctions, energy supply, supply chains)

Mitigation Strategies

• Focus on organic growth and operational excellence
• Leveraging high order backlog and promising development in core photonics business (semiconductor equipment sector)
• Monitoring and adapting to geopolitical risks

Supply Chain Management

Responsible Procurement

• Respect for human rights and environmental protection
• Whistleblowing system and anti-corruption measures
• Implementation of LkSG / supply chain act

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: ISO 27001 (for IT system)

UN Sustainable Development Goals

• Good Health and Well-being
• Industry, Innovation and Infrastructure
• Sustainable Cities and Communities
• Responsible Consumption and Production

Contribution through products and services, as well as internal targets and organization

Sustainable Products & Innovation

• TraffiPole (environmentally friendly traffic monitoring solution)
• VR/AR applications for design efficiency and reduced material consumption