Climate Change Data

Environmental Metrics

ESG Focus Areas

• Social Sustainability
• Environmental Sustainability
• Industrial Sustainability
• Corporate Governance & Financial Sustainability

Environmental Achievements

• BALTEK® SBC, the first carbon-neutral core material in the world.
• Reduced energy consumption by 10% in 2019 and a further 8% in 2020 at the Sins, Switzerland site.
• Reduced gas consumption by 26% in 2019 and a further 9% in 2020 at the Sins, Switzerland site.
• Reduced cooling water use by 15% in 2019 and a further 36% in 2020 at the Sins, Switzerland site.
• Reduced waste by approximately 12% in 2019 and an additional 8% in 2020 at the Sins, Switzerland site.
• Planted approximately 2,706 ha with balsa wood (2,165 ha in Ecuador and 541 ha in PNG), which is 26% higher than in the previous year.

Social Achievements

• Reduced number of safety incidents gradually, targeting zero accidents by 2023.
• Implemented pre-school education and adult literacy programs in Papua New Guinea.
• Financed the construction of a road for a nursing home in China.
• Participated in repairing a 15 km stretch of an access road in Cotopaxi, Ecuador.
• Donated several bus stops to the city of Quevedo, Ecuador.

Governance Achievements

• Adherence to the Global Code of Conduct.
• Year-on-year sustainable financial results and market positions.
• ISO 9001:2015, ISO 14001:2015 (Swiss site), and ISO 45001:2018 certifications.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations and social programs.
• Maintaining sustainable forestry practices while meeting increasing demand.

Mitigation Strategies

• Implemented COVID-19 safety measures and adapted social programs.
• Increased balsa wood planting rate, exceeding harvesting rate.
• Developed an Environmental Monitoring and Resource Optimization Guide for forestry sites.

Supply Chain Management

Responsible Procurement

• Inclusion of small regional growers in FSC® FMUs
• Communication of best practices and safety standards to suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Sustainable Development Goals (SDGs), FSC®

Certifications: FSC®-C019065 (Ecuador), FSC-C125018 (Papua New Guinea), ISO 9001:2015, ISO 14001:2015 (Swiss site), ISO 45001:2018 (Swiss site)

UN Sustainable Development Goals

• SDG 2
• SDG 3
• SDG 5
• SDG 8
• SDG 9
• SDG 12
• SDG 13
• SDG 15

The report details how 3ACM's initiatives contribute to these goals.

Sustainable Products & Innovation

• BALTEK® SBC
• Ocean-PET

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Sustainability
• Industrial Sustainability
• Corporate Governance & Financial Sustainability

Environmental Achievements

• BALTEK® SBC is the first carbon-neutral core material in the world.
• 52% more balsa trees planted in Ecuador compared to the previous year.
• 37% reduction in total fuel consumption at the Ecuador site.
• 32% reduction in non-hazardous waste at the Ecuador site.
• 20% reduction in gasoline and diesel consumption at the PNG site.
• 5.3% reduction in electricity consumption at the PNG site.

Social Achievements

• Three sites achieved zero accidents in 2021.
• Implementation of various health and safety programs.
• Support for employee sports activities.
• Pre-school education program in PNG.
• Adult literacy program in PNG.
• Water, food, and housing programs in PNG.
• Establishment of a clinic in PNG.

Governance Achievements

• Compliance with Global Code of Conduct.
• Year-on-year sustainable financial results.
• ISO 9001:2015, ISO 14001:2015 (Swiss site), and ISO 45001:2018 (Swiss site) certifications.

Climate Goals & Targets

Environmental Challenges

• Potential for plastic particle contamination during raw material unloading.
• Maintaining a sustainable supply of balsa wood.

Mitigation Strategies

• Implementation of Operation Clean Sweep® measures to prevent plastic particle contamination.
• Planting 50% more balsa trees in Ecuador in 2021 to ensure supply.
• Long-term partnerships with landowners in Ecuador and Papua New Guinea.

Supply Chain Management

Responsible Procurement

• Sourcing balsa wood from FSC®-certified plantations.
• Collaboration with local small and medium-sized businesses.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Sustainable Development Goals (SDGs)

Certifications: FSC® (Ecuador and Papua New Guinea plantations), ISO 9001:2015, ISO 14001:2015 (Swiss site), ISO 45001:2018 (Swiss site)

UN Sustainable Development Goals

• SDG 2
• SDG 3
• SDG 5
• SDG 8
• SDG 9
• SDG 12
• SDG 13
• SDG 15

Contributions to SDGs are described in the report.

Sustainable Products & Innovation

• BALTEK® SBC (carbon-neutral core material)
• AIREX® foams with low resin uptake
• ContourKore and BALTEK® Seal X solutions for reduced resin consumption

Environmental Metrics

ESG Focus Areas

• Climate Change Mitigation
• Greenhouse Gas Emissions Management
• Energy Efficiency Management
• Renewable Energy
• Water Management
• Sustainable Forest Management
• Materials Management
• Waste Management
• Circular Economy
• Employee Engagement
• Health and Safety
• Diversity and Inclusion
• Community Engagement
• Business Ethics
• Regulatory Compliance
• Responsible Sourcing

Environmental Achievements

• Relocated extrusion line from Glasgow, KY to High Point, NC, reducing transportation emissions by an average of 380 MT tons per year.
• Consolidated production in Ecuador, optimizing resource management and improving efficiency.
• Developed a solar PV project in Ecuador to power the R&D balsa center.
• Implemented the "Never Waste Campaign", resulting in the recycling of 51.5 metric tons of various materials.
• Achieved 47% renewable energy share in total energy consumption.
• Won three awards at the 5th Edition of the Sacha Awards for sustainability initiatives.
• Planted an average of 2.5 million trees per year in Ecuador and Papua New Guinea.

Social Achievements

• Launched the "Never Waste Campaign" to raise awareness and improve recycling practices.
• Sponsored an employee's participation in the Latin American Eco Electric Championship.
• Implemented a pilot project with a local retirement home in Sins, Switzerland.
• Provided gifts to support children suffering from cancer.
• Implemented CoreVita program for employee wellness.

Governance Achievements

• Established a dedicated Sustainability Committee.
• Successfully introduced and deployed a new Supplier Code of Conduct (SCoC) to 100% of major suppliers.
• Maintained full compliance with all applicable laws and regulations with no significant instances of non-compliance.

Climate Goals & Targets

Environmental Challenges

• Transitioning to renewable energy across all sites due to challenges like cloud cover in Ecuador.
• Data collection limitations for water consumption and complete training hour data.
• Increasing the percentage of female representation in top management positions.

Mitigation Strategies

• Developing a prototype to transition to green energy in Ecuador by measuring sunlight.
• Working to collect, analyze, and share water consumption data.
• Actively working on a tracking system for all training programs.
• Developing action plans to improve gender equality based on survey results.

Supply Chain Management

Supplier Audits: 100% of major suppliers received and countersigned the new Supplier Code of Conduct.

Responsible Procurement

• Supplier Code of Conduct (SCoC) requiring carbon footprint reporting, ban on child/forced labor, declaration of hazardous substances, ban on conflict minerals, respect for biodiversity, ethical behavior, data protection, and non-discrimination policies.

Climate-Related Risks & Opportunities

Physical Risks

• Climate challenges like cloud cover affecting solar energy potential in Ecuador.

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and processes.

Reporting Standards

Frameworks Used: GRI Standards (2021)

Certifications: FSC-C019065 (Ecuador), FSC-C125018 (Papua New Guinea)

Third-party Assurance: Not disclosed

Sustainable Products & Innovation

• AIREX® T92 PET foam with increasing recycled content; BALTEK® balsa wood from sustainably managed forests.

Awards & Recognition

• Three awards at the 5th Edition of the Sacha Awards (Ecuador).