Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Maintained energy consumption despite increase in energy-intensive technologies; reduced hazardous waste by 34%
• 85% of manufacturing facilities had ISO 14001 or EMAS certifications
• Invested 4.5 million euros for environmental purposes; 21,093 employees received environmental training

Social Achievements

• Improved working conditions by 5% and prevention management by 4%
• Increased number of 'good performance' facilities by 8%
• 3% increase in the number of women within the Group; 1,117 women hired

Governance Achievements

• Established a Code of Conduct based on UN Global Compact principles; implemented an Ethics Committee
• Conducted audits on Code of Conduct implementation in India, Mexico, and Russia
• No remuneration for Board of Directors members in 2014

Climate Goals & Targets

Environmental Challenges

• Price volatility of steel (main raw material)
• Significant investments required for new manufacturing facilities or increased capacity
• Highly competitive automobile components industry

Mitigation Strategies

• Over half of steel purchases done via resale programs with clients
• Disciplined growth approach associated with client development projects
• Geographic diversification to minimize risks due to fluctuations in local economies; client portfolio diversification

Supply Chain Management

Supplier Audits: 1,085 suppliers classified (76% A, 5% B, 19% C); audits conducted on suppliers with low scores or quality incidents

Responsible Procurement

• Supplier sustainability requirements (respect for human rights, health and safety, environment, business ethics)
• Regulations on Gifts and Tokens of Appreciation
• CSR survey for suppliers

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI 3.1 (Application Level A+), UN Global Compact

Certifications: ISO 14001, EMAS

Third-party Assurance: Ernst & Young (limited assurance)

Sustainable Products & Innovation

• Lighter products reducing fuel consumption and greenhouse gas emissions

Awards & Recognition

• Europe Supplier Excellence Award 2014 (General Motors)
• Premio Excelencia en Calidad 2014 (Opel)
• Supplier Quality Award (Nissan)
• Proyecto exterior de gran empresa (COFIDES)
• Supplier Award Excellence in Value (Honda)
• Fundación Junior Achievement por su compromiso con la educación
• Quality Excellence (Volvo)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Efficiency
• Waste Management
• Water Consumption
• Employee Health and Safety
• Training and Development
• Supplier Sustainability
• Human Rights
• Social Contribution
• Innovation

Environmental Achievements

• 5% improvement in energy efficiency
• 87% reduction in sludge through treatment facilities
• 97% of waste generated is recyclable
• Achieved a score of 91 out of 100 in CDP's carbon footprint report (higher than the average for supply chain companies)
• Voluntarily reported water footprint for the first time, achieving a score placing them in the second most demanding management level within the CDP Water initiative

Social Achievements

• Launched Gestamp Technology Institute (GTI) for vocational training
• Continued Master’s degree in International Industrial Project Management with Comillas Pontifical University
• Launched "Gestamp Inside Out" project to align social and environmental initiatives
• Allocated €967,736 for social actions
• 3,540 employees participated in volunteer activities

Governance Achievements

• Continued rotating audit plan to verify implementation of the Code of Conduct
• Audits conducted in Brazil and China in 2015, in addition to India, Mexico, and Russia in 2014
• Introduction of an external hotline in 2016 for greater confidentiality in reporting breaches of the Code of Conduct

Climate Goals & Targets

Environmental Challenges

• Increased energy consumption due to new technologies (hot stamping, hydroforming)
• Managing the growth of the workforce (91% growth over 5 years)
• Maintaining competitiveness in a global market
• Supply chain complexity due to globalization
• Regional economic fluctuations (declines in Russia and Brazil)

Mitigation Strategies

• Implemented an ambitious energy efficiency project with Siemens
• Developed Gestamp Production System (GPS) for improved efficiency
• Launched "Gestamp Supplier Risk Management Project" (SRM) to strengthen supply chain management
• Focused on employee training and development
• Geographic diversification to mitigate regional demand fluctuations

Supply Chain Management

Supplier Audits: 226/year

Responsible Procurement

• Gestamp Supplier Risk Management Project (SRM)
• Achilles pre-qualification of suppliers
• ISO TS 16949 or ISO 9001 certification (87% of suppliers)
• Compliance with UN Global Compact principles

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Stringent CO2 emission regulations

Opportunities

• Development of lightweight, energy-efficient products

Reporting Standards

Frameworks Used: GRI G4 (exhaustive option)

Certifications: ISO 14001 (88% of manufacturing facilities), EMAS II (some facilities)

Third-party Assurance: Ernst & Young (limited assurance)

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)

Gestamp's initiatives contribute to these goals through energy efficiency, employee training, sustainable product development, waste reduction, and climate change mitigation.

Sustainable Products & Innovation

• Lightweight components reducing vehicle emissions
• Hot stamping technology
• Hydroforming technology
• Remote laser welding
• In-die partial hardening
• HT700 Flex Laser

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social
• Governance

Environmental Achievements

• Reduced energy consumption by more than 36 GWh in 2019.
• 98.2% of total waste recycled, reused, or energy recovered.
• Edscha Do Brasil plant achieved "Zero Landfill" status.

Social Achievements

• Launched a K-12 dual training program in Chattanooga, USA.
• 5,515 employees participated in 213 social initiatives.
• Total social contribution of €1,339,723.

Governance Achievements

• Compliance with 50 out of 64 recommendations from the Good Governance Code of Listed Companies.
• Approved Human Rights Policy.
• Approved updated Crime Prevention Model and Manual.

Climate Goals & Targets

Environmental Challenges

• Market production volume decline of 5.2% in Gestamp's footprint.
• Supply chain disruptions due to extreme weather events.
• Cybersecurity risks.

Mitigation Strategies

• Opened four new facilities in 2019.
• Developed alternative sourcing strategies.
• Proactively improved information system security.

Supply Chain Management

Supplier Audits: 300 audits in 2019

Responsible Procurement

• CSR Requirements for Suppliers
• Supplier Portal

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events impacting supply chain and operations.

Transition Risks

• Increased energy prices
• Regulatory changes

Opportunities

• Improved market positioning through lighter products
• Development of new products for EVs

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001, EMAS, IATF 16949

Third-party Assurance: Ernst & Young

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 8
• SDG 10
• SDG 12
• SDG 13
• SDG 14
• SDG 15
• SDG 17

Initiatives contribute to various SDGs through economic development, education, decent work, reduced inequalities, responsible production and consumption, climate action, life below water, life on land, and partnerships.

Sustainable Products & Innovation

• Lighter weight components reducing CO2 emissions
• Electric battery box
• Aluminium chassis for EVs

Awards & Recognition

• Zero Waste certificate for Edscha Do Brasil
• CDP Climate Score B

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Management
• Circular Economy
• Health and Safety
• Local Communities
• Diversity and Equal Opportunities
• Ethics and Regulatory Compliance
• Risk Management

Environmental Achievements

• Reduced energy consumption by almost 13 GWh in 2020, despite production stoppages caused by COVID-19.
• 98% of total waste was recycled, reused, or recovered for energy.
• Achieved a 30% reduction target for total emissions in scopes 1 and 2, and a 22% reduction in scope 3 before 2030 (validated by SBTi).

Social Achievements

• Launched employee well-being programs and flexible work measures to mitigate the impact of COVID-19.
• Implemented a new supplier risk management system.
• Carried out 140 social and not-for-profit activities, with 2,437 employees participating voluntarily.

Governance Achievements

• Governing bodies aligned with CNMV Good Governance Recommendations.
• Established anti-corruption training for all employees.
• Implemented a new tool for supplier risk management using AI and internet searches.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting global economy and automotive sector, leading to revenue decline and production stoppages.
• Supply chain disruptions due to the pandemic.
• Uncertainty about vehicle sales volume forecasts.

Mitigation Strategies

• Implemented a Coronavirus Contingency Plan and Action Protocol to protect employees and ensure business continuity.
• Adopted flexible internal work measures and cost reduction strategies.
• Developed alternative sourcing strategies and conducted supplier surveys to assess short-term risks.

Supply Chain Management

Supplier Audits: 157 on-site audits in 2020

Responsible Procurement

• Code of Conduct for Suppliers
• CSR Requirements for Suppliers
• Supplier risk management system

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events impacting raw material supply and operations.

Transition Risks

• Increased energy prices due to regulations.

Opportunities

• Reduced weight of products leading to lower emissions.
• Development of new products for electric vehicles.

Reporting Standards

Frameworks Used: GRI Standards (Core option), Science Based Targets initiative (SBTi)

Certifications: ISO 14001, EMAS, IATF 16949, TISAX / VDA ISA

Third-party Assurance: Ernst & Young

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 5
• SDG 6
• SDG 8
• SDG 9
• SDG 12
• SDG 13
• SDG 15
• SDG 17

Initiatives contribute to these goals through various programs and policies.

Sustainable Products & Innovation

• Lighter weight components reducing fuel consumption and emissions.

Awards & Recognition

• 7th position in the automotive sector in the Sustainability Yearbook 2021.

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Signed an agreement for 100% renewable electricity consumption from 2022 for all Spanish plants, becoming the first automotive sector group in Spain to operate fully with renewable electricity.
• Reduced CO₂ emissions (in relative terms) thanks to improved environmental management and process improvement.
• Achieved a reduction in CO₂ Emission Index.
• Obtained AENOR Zero Waste certificate, with 98.5% of total waste recycled, reused, or energy recovered.
• First Tier 1 supplier in the automotive sector to offer customers green steel certificates, reducing Scope 3 emissions.

Social Achievements

• Implemented a Flexibility and Work-Life Balance Policy in Spain, to be extended to other areas in 2022.
• Improved internal promotion ratio to 87% for Division Directors and Country Managers, and 76% for Plant Managers.
• Launched a global Plant Manager development program with participants from more than 13 countries.
• Developed ESG Academy with 'Introduction to ESG' course for 100% of the workforce by the end of 2022.

Governance Achievements

• Incorporated a Sustainability Committee to the Board of Directors, composed of a majority of independent members.
• Updated materiality analysis with the advice of an external consultant, applying the GRI 101 Standard.
• Improved the database in SAP HCM by interconnecting it with the payroll systems and defining common salary additions across the Group.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the semiconductor shortage.
• Unprecedented rise in steel prices and significant inflation pressures.
• Uncertainty around forecasts of vehicle sales volumes and the ability to adapt to declines in sales.
• Risks associated with the implementation of Industry 4.0.
• ESG risks related to environmental impact, social issues, and governance.

Mitigation Strategies

• Launched the ATENEA Transformation Plan to improve efficiency and effectiveness.
• Implemented pass-through mechanisms for steel price fluctuations.
• Developed a new concept of flexible assembly to mitigate market uncertainty and reduce investment needs.
• Implemented a long-term power purchase strategy with PPAs.
• Developed a robust risk management system and a Criminal Risk Prevention Model.

Supply Chain Management

Supplier Audits: 228 on-site audits in 2021

Responsible Procurement

• Code of Conduct
• CSR Requirements for Suppliers
• Conflict Minerals Policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme climatic phenomena
• Critical water stress
• Increased ambient temperature

Transition Risks

• Uncertainty about technology
• Increased emission requirements from customers

Opportunities

• Improving energy efficiency and cost reduction
• Better market positioning
• New business lines and product development

Reporting Standards

Frameworks Used: GRI, SASB, SBTI, UN Global Compact

Certifications: ISO 14001, EMAS, IATF 16949, AENOR Zero Waste

Third-party Assurance: Ernst & Young (limited assurance)

UN Sustainable Development Goals

• Goal 3: Good health and well-being
• Goal 7: Affordable and clean energy
• Goal 8: Decent work and economic growth
• Goal 9: Industry, innovation and infrastructure
• Goal 11: Sustainable cities and communities
• Goal 12: Responsible consumption and production
• Goal 13: Climate action

Gestamp's initiatives contribute to these goals through various environmental, social, and governance programs.

Sustainable Products & Innovation

• Lightweight components
• Electric battery boxes
• Products designed to increase fuel efficiency and/or reduce emissions

Awards & Recognition

• 10th Excellence Award from the German Chamber of Commerce in Spain
• Appearance in the Sustainability Year Book 2022

Environmental Metrics

ESG Focus Areas

• Sustainable Mobility
• Circular Economy
• Climate Change
• Talent
• Health and Safety
• Responsible Supply Chain Management
• Ethics and Good Governance

Environmental Achievements

• 100% renewable energy in Spain (agreement with Naturgy)
• 100% renewable energy in Brazil (agreement with Cemig) from 2023
• More than 98% of waste recycled, reused, and recovered
• 16% of plants certified under ISO 50001 energy management system standard; strategy for remaining plants based on ISO 50001 guidelines.
• Reduction of almost 19 GWh in energy consumption in 2022 through energy efficiency measures.
• A- score in the Carbon Disclosure Project (CDP) initiative.

Social Achievements

• Launched 'Gender Equality Vision 2020–2025' program in India
• Implemented Flexibility and Work-Life Balance Policy in Spain and other areas
• 73.3% employee satisfaction with the organization (based on survey)
• 93% internal promotion rate for Division Directors and Country Managers; 74% for Plant Managers.
• Almost 100% of Group's plants achieved ISO 45001 certification (except for 4 in Russia).

Governance Achievements

• Approved 2025 ESG Strategic Plan
• Established ESG Committee and strengthened ESG Department
• Continued Board of Directors’ Sustainability Committee meetings
• Maintained Integrated Risk Management System (IRMS)
• Updated Code of Conduct and Human Rights Policy
• Resumed Code of Conduct audits, aiming for 100% Group coverage.

Climate Goals & Targets

Environmental Challenges

• Skyrocketing inflation and increased interest rates
• Supply chain tensions due to the war in Ukraine and energy price increases
• Semiconductor shortage (though less severe than previous year)
• Availability, cost, and customer approval of green steel and steel with high recycled content
• ESG risks linked to geographical location of plants and supply chain complexity

Mitigation Strategies

• Strict cost control and efficiency measures
• Constructive price discussions with customers
• Reinforcing financial positioning
• Agreements with ArcelorMittal for low-emission steel
• Meetings with strategic suppliers to secure green steel
• Collaboration with customers to align with their sustainability requirements
• Acquisition of 33.3% of Gescrap Group (metal recycling)
• 2025 ESG Strategic Plan to address ESG risks

Supply Chain Management

Supplier Audits: 166 on-site audits in 2022

Responsible Procurement

• General Purchasing Terms
• Supplier Portal
• Ethical, Social, and Environmental Requirements for Suppliers
• Conflict Mineral Policy
• UN Global Compact adherence

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather phenomena
• Changes in rainfall patterns
• Higher temperatures

Transition Risks

• Increased emission requirements from customers
• Costs of transitioning to lower-emission technologies
• Uncertainty about technology leading to lower sales

Opportunities

• Energy saving measures
• Development of new products/services for EVs
• Improved competitive positioning

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC

Certifications: ISO 14001, ISO 45001, IATF 16949, EMAS, ISO 50001 (16% of plants), TISAX / VDA ISA, ISO 27001 (for some suppliers)

Third-party Assurance: Ernst & Young (limited assurance)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 11 (Sustainable Cities and Communities)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

Gestamp's initiatives contribute to these goals through sustainable industry practices, circular economy efforts, employment creation, climate change mitigation and adaptation, and responsible resource management.

Sustainable Products & Innovation

• GES-GIGASTAMPING™ and GES-ENERCONT™ (extreme size parts)
• Electric battery boxes
• Lightweight chassis components
• Aluminium chassis components

Awards & Recognition

• 2022 Composites UK ‘Innovation in Design’ award
• Automotive Innovations Award 2021 (Edscha Power Door)