Climate Change Data

COMER INDUSTRIES S.p.A.

Climate Impact & Sustainability Data (2021, 2022, 2023)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:10840 tCO2e/year (Scope 1 + Scope 2 Market Based)
Scope 1 Emissions:5075 tCO2e/year
Scope 2 Emissions:5765 tCO2e/year (Market Based)
Scope 3 Emissions:1916 tCO2e/year
Renewable Energy Share:32%
Total Energy Consumption:150,876 GJ/year
Water Consumption:26.347 ML/year
Waste Generated:6195 tons/year
Carbon Intensity:93 tCO2e/10,000 machine hours (2021)

ESG Focus Areas

  • Climate change
  • Energy
  • Emissions
  • Waste management
  • Occupational health and safety
  • People management
  • Training and development
  • Diversity and inclusion
  • Supply chain sustainability
  • Responsible business management
  • Compliance
  • Territory development

Environmental Achievements

  • 21% reduction in emissions
  • 32% of total electricity consumed globally comes from certified renewable sources
  • Matera plant powered by 100% green electricity
  • Reggiolo industrial site expanded into an energy-efficient building
  • 3% reduction in hazardous waste intensity index

Social Achievements

  • Instituted a policy to regulate teleworking, reducing commutes and contributing to work-life balance
  • Introduced hybrid and full electric vehicles
  • Planted a forest of 4,000 trees in Kenya
  • 10% increase in number of employees
  • 74% increase in training hours per employee
  • 100% coverage of health and safety management system

Governance Achievements

  • Joined the United Nations Global Compact
  • Updated Code of Ethics and 231 Model
  • Introduced an Internal Audit function

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Achieve net-zero emissions
  • Define medium-long term emission reduction targets aligned with SDGs 7 and 13
Short-term Goals:
  • Extend supply of electricity from certified renewable sources to all Italian production sites
  • Implement a plan to further reduce supply chain risks
  • Install several recharging stations for electric vehicles at the Matera site
  • Disseminate and apply the new Diversity & Inclusion policy

Environmental Challenges

  • Supply chain disruptions due to the pandemic and economic uncertainty
  • Increasing costs of raw materials and services
  • Transition risks related to climate change regulations and technological evolution
  • Physical risks related to extreme weather events
  • Water scarcity in some operating areas
Mitigation Strategies
  • Developed alternative sourcing strategies
  • Implemented a global teleworking policy
  • Integrated the Cavriago and Reggiolo production systems
  • Developed advanced monitoring systems for regulatory changes
  • Implemented contingency plans
  • Introduced systems to monitor supplier sustainability performance
  • Reinforced structures and emergency plans to address physical risks
  • Actions to improve energy efficiency and reduce water consumption

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Total Cost of Ownership approach
  • Supplier qualification based on ethical, sustainable, and financial criteria
  • Vendor Rating tool for performance monitoring
  • Self-assessment questionnaire on occupational health and safety, environmental management, and ethics

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Water scarcity
  • Desertification
Transition Risks
  • Changes in emission regulations
  • Technological evolution
  • Changes in customer behavior
Opportunities
  • Development of energy-efficient products
  • Development of products for renewable energy applications
  • Improved customer ESG ratings

Reporting Standards

Frameworks Used: GRI Standards: core option

Certifications: ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, ISO 50001:2018

Third-party Assurance: Deloitte & Touche S.p.A. (limited assurance)

UN Sustainable Development Goals

  • Goal 7 (Affordable and clean energy)
  • Goal 13 (Climate action)

Initiatives to increase renewable energy use, reduce emissions, and develop sustainable products contribute to these goals.

Sustainable Products & Innovation

  • New gearbox for wind turbines (PG4000PR series)
  • Electromagnetically controlled synchronized gearbox for irrigator drives (D-742 and D-744 models)
  • Low-voltage electric propulsion transmissions for compact vehicles

Awards & Recognition

  • Supplier Excellence Award
  • Supplier Quality Excellence Process GOLD LEVEL (Jiaxing)
  • Supplier Quality Excellence Process SILVER LEVEL (Bangalore)
  • Award from the National Safety Council (Bangalore)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:25,724 tCO2e/year (Scope 1 + Scope 2 market-based)
Scope 1 Emissions:9,456 tCO2e/year
Scope 2 Emissions:16,268 tCO2e/year (market-based)
Scope 3 Emissions:3,350 tCO2e/year (partial)
Renewable Energy Share:34% of total energy use
Total Energy Consumption:356,271 GJ/year
Water Consumption:52.50 ML/year
Waste Generated:16,091 tons/year
Carbon Intensity:100 tCO2e/10,000 machine hours (market-based)

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Reduced hazardous waste intensity index by 6% (like-for-like basis compared to 2021)
  • Increased electricity from renewable sources to 34% of total consumption
  • Integrated sustainability performance monitoring and reporting between Comer Industries and Walterscheid
  • Developed products for electric vehicles with innovative content in terms of weight reduction, lubrication, and noise

Social Achievements

  • Published an Integrated Human Rights Policy
  • Consolidated a globally extended structural teleworking policy
  • Performed supply chain due diligence on compliance, human rights, and sustainability
  • Promoted inclusive leadership through membership in the Valore D network

Governance Achievements

  • Updated Code of Ethics
  • Consolidated risk assessment of sensitive processes
  • Adhered to the United Nations Global Compact initiative
  • Received a silver rating from EcoVadis

Climate Goals & Targets

Long-term Goals:
  • Achieve net zero emissions by 2050
Medium-term Goals:
  • Establish a medium- to long-term global sustainability strategy
  • Achieve net zero emissions by 2050
Short-term Goals:
  • Complete the process of integrating the management system by incorporating all the newly acquired entities by 2023

Environmental Challenges

  • Supply chain disruptions due to the complex international environment
  • Mismatch in energy performance between Comer Industries and Walterscheid sites
  • Increased cost of energy due to the war in Ukraine
Mitigation Strategies
  • Activated alternative supply chains to establish double sourcing
  • Implemented energy efficiency measures and shifted to renewable energy
  • Acted with pragmatism and flexibility to ensure the continuity of procurements and supply to markets

Supply Chain Management

Supplier Audits: 81% of new suppliers evaluated using environmental and social criteria in 2022

Responsible Procurement
  • Total Cost of Ownership approach
  • Supplier Development department
  • Audits on quality, environmental, social, and health and safety aspects
  • Code of Ethics adherence

Climate-Related Risks & Opportunities

Physical Risks
  • Acute physical risks
  • Chronic physical risks
Transition Risks
  • Technological
  • Legal
  • Market
  • Reputational
Opportunities
  • Technological
  • Energy Source
  • Market

Reporting Standards

Frameworks Used: GRI Standards 2021

Certifications: ISO 14001:2015 (Environmental Management System), ISO 45001:2018 (Health and Safety Management System), ISO 9001:2015 (Quality Management System)

Third-party Assurance: Deloitte & Touche S.p.A. (limited assurance)

UN Sustainable Development Goals

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

The initiatives affect all areas of Company life and have an impact on business activities at the level of processes, products, applications, management systems, technologies, and equipment.

Sustainable Products & Innovation

  • 2400- and 2500-series PTO driveshafts
  • P-Series axle line
  • PG1500 EX planetary drive
  • I-S428 HS electric transmission

Awards & Recognition

  • Not disclosed

Reporting Period: 2023

Environmental Metrics

ESG Focus Areas

  • Environment, health and safety
  • Social responsibility
  • Sustainability

Environmental Achievements

  • 17% reduction in energy consumption intensity index
  • 6% improvement in greenhouse gas emission intensity
  • 5% reduction in hazardous waste

Social Achievements

  • Donation of two ambulances to the Reggiolo Red Cross
  • 36% improvement in occupational accident frequency indicator
  • Bangalore plant recorded no accidents for the third consecutive year
  • Various education and training projects

Governance Achievements

  • Listing on the Euronext Milan regulated market
  • Share buyback program

Climate Goals & Targets

Long-term Goals:
  • Net Zero 2050

Environmental Challenges

  • Market contraction in agricultural sector (-6.7% decline in revenues)
  • Geopolitical shocks and supply disruptions
  • Persistent underlying inflation
  • Worsening of real estate sector difficulties
  • Climate change risks (physical and transition)
Mitigation Strategies
  • Investments in new production lines and technologies
  • Energy efficiency improvements
  • Renewable energy sourcing
  • Waste reduction initiatives
  • Preventive approach to occupational health and safety
  • TCFD-aligned climate risk management
  • Mitigation plans for high and significant climate risks

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather
  • Flooding
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, TCFD

Third-party Assurance: Deloitte & Touche S.p.A.