Climate Change Data

Iochpe-Maxion S.A.

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:289,116.2 tCO2e/year (Scope 1 & 2 Market-Based)
Scope 1 Emissions:174,516.8 tCO2e/year
Scope 2 Emissions:114,599.3 tCO2e/year (Market-Based)
Scope 3 Emissions:3,559,753.3 tCO2e/year
Renewable Energy Share:24.5% of total energy use
Total Energy Consumption:5,904,145 GJ/year
Water Consumption:864.5 ML/year
Waste Generated:28,298.5 tons/year
Carbon Intensity:0.000272 tCO2e/kg produced (Scope 1 & 2 Market-Based) in 2023

ESG Focus Areas

  • Climate Change
  • Diversity & Inclusion
  • Corporate Governance
  • Supply Chain Management
  • Social Impact

Environmental Achievements

  • Reduced combined Scope 1 and 2 greenhouse gas absolute emissions by 14.4% and relative emissions by 13.2% compared to 2022.
  • Reached 2025 Roadmap Zero GHG emissions intensity reduction goal of 30% early with a 2023 reduction of 13.2%.
  • Reduced water consumption intensity by 27.68% when compared to 2020.
  • Achieved a 6.4% reduction in Scope 1 emissions compared to the base year of 2019.
  • Decreased Scope 2 emissions by 56.7% compared to 2019 and 31.2% compared to 2022.

Social Achievements

  • Launched Supplier Code of Conduct.
  • Published a new Health, Safety and Sustainability Policy.
  • Facilitated over 250 local activities covering D&I topics, with 60% participation from blue-collar employees.
  • Improved employee engagement score to 83% and enablement score to 77%.

Governance Achievements

  • Maintained the practice of compensation metrics tied to ESG objectives for senior-level executives.
  • Joined the United Nations Global Compact.
  • Implemented the Permits Management tool for global visibility of permit-related information.
  • Improved Ecovadis score to 58, moving from the 50th to the 69th percentile.

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality by 2040.
Medium-term Goals:
  • Increase renewable electricity use to 90% by 2030.
  • Reduce CO2 emissions by 70% by 2030.
Short-term Goals:
  • Reduce CO2 emissions by 30% by 2025 (already achieved).

Environmental Challenges

  • Addressing Scope 3 emissions, particularly purchased goods and services (99.2% of Scope 3 emissions).
  • Managing risks related to climate change, including emerging carbon pricing mechanisms, changing customer behavior, extreme weather events, and increased raw material costs.
Mitigation Strategies
  • Continued advancement in understanding Scope 3 emissions, focusing on purchased goods and services.
  • Implementing various initiatives to reduce carbon footprint, including capital and non-capital investments, process optimization, and energy-related projects.
  • Developing contingency plans to maintain production capacity during extreme weather events.
  • Working with supply chain teams to acquire more green metal options to reduce Scope 3 CO2 footprint.

Supply Chain Management

Supplier Audits: 149 suppliers assessed (47% of total spend) in 2023.

Responsible Procurement
  • Supplier Code of Conduct
  • ESG criteria integrated into Supplier Risk Management Procedure
  • AI-based platform for monitoring and mitigating risks among essential suppliers
  • CDP and SAQ assessments
  • Sustainability Supplier Award

Climate-Related Risks & Opportunities

Physical Risks
  • Cyclone, hurricane, typhoon
Transition Risks
  • Emerging regulation carbon pricing mechanisms
  • Changing customer behavior
  • Increased cost of raw materials
Opportunities
  • Resource efficiency
  • Energy source diversification
  • Resilience (production capacity diversification)
  • Access to new markets (green steel and aluminum)

Reporting Standards

Frameworks Used: GRI Standards 2021, SASB Standards, TCFD Recommendations

Certifications: ISO 14001:2015, ISO 45001, IATF 16949:2016, ISO 9001:2015

Third-party Assurance: Independent third-party assurance for GHG emissions data and financial results; internal verification for other information.

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)

Various initiatives contribute to these goals as described throughout the report.

Sustainable Products & Innovation

  • Green Wheel Transformative Project (ultra-low CO2 wheels)
  • Lightweight inner valve truck wheel
  • Industry’s lightest truck steel wheel

Awards & Recognition

  • Certificate of Recognition from Toyota Motors Europe