Climate Change Data

TI Fluid Systems plc

Climate Impact & Sustainability Data (2019, 2021, 2022, 2023)

Reporting Period: 2019

Environmental Metrics

Total Carbon Emissions:484,155 tCO2e (Scope 1 & 2)
Scope 1 Emissions:388,656 tCO2e
Scope 2 Emissions:95,499 tCO2e
Total Energy Consumption:537,437,363 kWh
Carbon Intensity:0.000198657091 tCO2e per Euro revenue (2019)

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Net reduction of hazardous and non-hazardous waste production
  • Increased volume of material being recycled and reused
  • Several plants in Spain switched to green energy, eliminating an estimated 1,508 tonnes of CO2e emissions
  • Installation of solar panels in Jiading, China, reducing CO2e emissions

Social Achievements

  • 2019 intern class had an equal number of female and male engineering interns; 29% of non-engineering interns were women
  • Employee engagement survey showed high levels of engagement and understanding of Group objectives
  • Appointment of two additional female Board members

Governance Achievements

  • Full compliance with the UK Corporate Governance Code 2018
  • Externally facilitated review of Board effectiveness by Lintstock
  • Board changes focused on succession planning

Climate Goals & Targets

Medium-term Goals:
  • Re-evaluate current corporate greenhouse gas reduction target (10% reduction by 2027)
Short-term Goals:
  • Develop a water reduction target in 2020 for implementation in 2021

Environmental Challenges

  • Global light vehicle production volumes declined by 5.6%
  • Competition and customer pricing pressure
  • Business continuity risks (fire, flood, equipment breakdown, supplier failure, raw material price fluctuations, labor relations, IT infrastructure)
  • Product development and changes in technology
  • Operating globally and regulatory compliance
  • Key personnel dependencies
  • US-China trade conflict impacting China operations
Mitigation Strategies
  • Diversified customer base and geographic footprint
  • Rigorous quality control systems
  • Improved operating efficiencies and cost reductions
  • Business continuity planning (BCP)
  • Investment in alternative engineering solutions and advanced products
  • Monitoring and assessing regulatory requirements
  • Bespoke employment terms for key personnel, recruitment and development programs
  • Cost base flexibility in China

Supply Chain Management

Responsible Procurement
  • Global Supplier Requirements Manual

Climate-Related Risks & Opportunities

Opportunities
  • Increased demand for advanced fluid handling products and systems driven by emission reduction, fuel efficiency, and electrification megatrends

Reporting Standards

Frameworks Used: GRI, Greenhouse Gas Protocol, Kyoto Protocol

Certifications: ISO 14001

Sustainable Products & Innovation

  • Pressurized fuel tanks
  • Thermal management products for HEVs and BEVs

Awards & Recognition

  • Numerous awards from customers recognizing commitment to quality, delivery, safety, and innovation

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:34,619.35 tCO2e (Scope 1) and 230,266.09 tCO2e (Scope 2) in 2021
Scope 1 Emissions:34,619 tCO2e
Scope 2 Emissions:230,266 tCO2e
Renewable Energy Share:2.8% in 2021
Total Energy Consumption:485,717,373 kWh in 2021
Water Consumption:988,177 m3 in 2021

ESG Focus Areas

  • Climate Change
  • Diversity & Inclusion
  • Governance
  • Product Safety
  • Community Relations
  • Occupational Health and Safety
  • Resource Use (Water)
  • Waste Management

Environmental Achievements

  • Reduced Scope 1 and 2 emissions significantly from 2019 baseline, largely due to volume reduction related to COVID-19 and the microchip shortage, and procurement of renewable energy.
  • Net reduction in electricity consumption over the last three years (partially due to COVID-19 and microchip shortage, and partially due to energy efficiency projects).
  • Committed to purchasing 100% renewable power for three manufacturing locations, two test centers, and corporate offices in Michigan starting January 2024.
  • Installation of cutting-edge tube coating technology in Marysville, Michigan, resulting in zero solid waste and near-zero wastewater, 35% reduction in chemical consumption, 60% reduction in rinsing water, and 30% reduction in electricity consumption.

Social Achievements

  • Introduced ‘Fluid Learning’ online learning platform providing educational and developmental tools to all salaried employees.
  • Improved global gender split to 2.3/1.0 (male to female) in 2021.
  • Implemented a Group-wide hybrid work model allowing many employees to work from home 40% of the time.
  • Implemented several initiatives to support employee physical and mental health, including a Global Employee Assistance Programme.
  • Implemented diversity programmes including inclusivity assessments and training for top management, anti-bias training, regional diversity committees, programmes to increase gender diversity, and mentoring programmes for women.
  • Montornès, Spain facility won the fifth edition of the Lismivo Award celebrating diversity and social responsibility.

Governance Achievements

  • Established ESG Steering Committee in 2021 to provide long-term vision and oversight of sustainability strategy.
  • Updated Health and Safety and Human Rights policies.
  • Incorporated environmental and social performance targets into the long-term incentive programme for Executive Directors and senior management.

Climate Goals & Targets

Long-term Goals:
  • Reduce Scope 1 and 2 emissions by 37.5% compared to 2019 levels by 2039 (evaluating revision to 1.5°C model).
Medium-term Goals:
  • Reduce Scope 1 and 2 emissions by 26% compared to 2019 levels by 2034.
  • FCS Process Plants: 25% water reduction from 2020 baseline by 2030 (3.00% annual reduction).
  • FCS Thermal Plants: 10% water reduction from 2020 baseline by 2030 (1.25% annual reduction).
  • FCS Systems, FTDS Pump and FTDS Tank Plants: 100% low-flow fixtures by 2030.
Short-term Goals:
  • Reduce Scope 1 and 2 emissions by 16% compared to 2019 levels by 2029.

Environmental Challenges

  • COVID-19 pandemic and microchip shortage impacting production volumes and emissions data.
  • Measuring and reporting Scope 3 emissions.
  • Ensuring accurate and timely safety reporting from all regions.
Mitigation Strategies
  • Working with an independent consultant to measure and assess Scope 3 emissions (data expected in the next sustainability report).
  • Implementing initiatives to improve safety reporting accuracy and timeliness, particularly in Asia Pacific.
  • Implementing energy efficiency projects and procuring renewable energy.

Supply Chain Management

Responsible Procurement
  • Global supplier requirements manual
  • Dedicated supplier portal
  • Purchasing terms and conditions

Climate-Related Risks & Opportunities

Opportunities
  • Development of energy-efficient products for EVs

Reporting Standards

Frameworks Used: GRI Standards 2022, SASB Standards for Automotive Parts, TCFD Recommendations

Certifications: ISO 45001 (partially implemented)

UN Sustainable Development Goals

  • SDG 3: Good Health and Well-being
  • SDG 7: Affordable and Clean Energy
  • SDG 12: Responsible Consumption and Production
  • SDG 5: Gender Equality
  • SDG 6: Clean Water and Sanitation
  • SDG 13: Climate Action

TI Fluid Systems' initiatives align with these SDGs through various programs and targets related to safety, renewable energy, water conservation, diversity and inclusion, and climate action.

Sustainable Products & Innovation

  • Lightweight pressure-resistant fuel tanks
  • Lightweight plastic lines and connectors
  • High-pressure fuel rails
  • Chassis thermal plastic manifolds
  • Battery thermal plastic lines and connectors
  • Aluminium lines and connectors
  • Rubber lines

Awards & Recognition

  • London Stock Exchange’s Green Economy Mark
  • Lismivo Award (Montornès, Spain)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:260,709 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:30,383 tCO2e/year
Scope 2 Emissions:229,185 tCO2e/year
Renewable Energy Share:4.6%
Total Energy Consumption:498,613,698 kWh/year
Water Consumption:1,019,812 m3/year
Waste Generated:33,615.6 metric tons/year (hazardous and non-hazardous)

ESG Focus Areas

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

Environmental Achievements

  • Adopted updated, science-based GHG emissions reduction targets (50% reduction in Scopes 1 and 2 and 30% reduction in Scope 3 by 2030 from a 2021 baseline)
  • Increased renewable energy use by 4.6% in 2022
  • Opened e-Mobility Innovation Centre (e-MIC) using 100% renewable electricity and green gas
  • Implemented water conservation targets (25% reduction for FCS Process Plants and 10% for FCS Thermal Plants by 2030 from 2020 baseline; 100% low-flow fixtures by 2030 for other plants)
  • Significant reduction in GHG emissions from 2019 due to volume reduction and renewable energy procurement

Social Achievements

  • Introduced ‘Fluid Learning’ online learning platform, with 73% of salaried staff completing 5,400 certifications in 2022
  • Improved global gender split to 2.3/1.0 (male to female) in 2022
  • Implemented a Group-wide hybrid work model
  • Established a Global Employee Assistance Programme (EAP)
  • Established scholarship programmes in Germany, Poland, Mexico, the US, and China for female students studying STEM subjects (55 scholarships totaling €120,000 awarded in 2022)
  • Implemented inclusivity assessments and training for top management
  • Reviewed recruitment processes to minimize unconscious bias

Governance Achievements

  • Established an ESG Steering Committee in 2021
  • Linked executive compensation to ESG performance (25% of long-term incentive)
  • Published the Group’s first stand-alone 2021 Sustainability report
  • Expanded ISO 45001 safety management framework to cover an additional 20 plants in 2022

Climate Goals & Targets

Long-term Goals:
  • Evaluate potential net zero pathway for the Group
Medium-term Goals:
  • 50% reduction of Scope 1 and 2 emissions and 30% reduction of Scope 3 emissions by 2030 from 2021 baseline
  • Achieve water conservation targets by 2030
Short-term Goals:
  • Complete certification of all manufacturing locations to ISO 45001 by 2024
  • Formalise waste minimisation and landfill avoidance targets in 2023
  • Issue a global sustainable purchasing policy in 2023

Environmental Challenges

  • Increase in electricity consumption and fossil fuel consumption in 2022, correlated to revenue increase
  • Scope 3 emissions make up over 70% of total emissions
  • Water consumption baseline reassessment needed due to COVID-19 plant shutdowns in 2020
Mitigation Strategies
  • Developed renewable electricity and energy efficiency plans to support achievement of GHG reduction targets
  • Developed a formal system for promoting and monitoring the sustainability of our supply chain
  • Implemented water conservation targets and programs
  • Formalising a waste minimisation target and new landfill avoidance target for 2023

Supply Chain Management

Supplier Audits: 44 of the largest suppliers surveyed in late 2022

Responsible Procurement
  • Global supplier requirements manual
  • Dedicated supplier portal
  • Purchasing terms and conditions
  • Initial supplier survey to evaluate sustainability status

Climate-Related Risks & Opportunities

Opportunities
  • Development of energy-efficient products for EVs

Reporting Standards

Frameworks Used: GRI Standards 2022, SASB Standards for Automotive Parts, TCFD recommendations

Certifications: ISO 45001 (partially implemented), IATF 16949 (majority of manufacturing locations)

UN Sustainable Development Goals

  • SDG 3: Good Health and Well-being
  • SDG 7: Affordable and Clean Energy
  • SDG 12: Responsible Consumption and Production
  • SDG 5: Gender Equality
  • SDG 6: Clean Water and Sanitation
  • SDG 13: Climate Action

Initiatives described throughout the report align with these SDGs

Sustainable Products & Innovation

  • Lightweight pressure-resistant fuel tanks
  • Lightweight plastic lines and connectors
  • High-pressure fuel rails
  • Chassis thermal plastic manifolds
  • Battery thermal plastic lines and connectors

Awards & Recognition

  • London Stock Exchange’s Green Economy Mark

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:220,208 tonnes CO2e/year
Scope 1 Emissions:27,105 tonnes CO2e/year
Scope 2 Emissions:193,103 tonnes CO2e/year
Scope 3 Emissions:1,095,148 tonnes CO2e/year
Total Energy Consumption:500,530,991 kWh/year

ESG Focus Areas

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

Environmental Achievements

  • 15% reduction in Scope 1 & 2 emissions compared to 2021 baseline
  • SBTi approval of 2030 carbon emission reduction targets (Scope 1 & 2: -50%, Scope 3: -30%)

Social Achievements

  • Conducted Ethics Sentiment Survey
  • Held ‘All Employee’ meetings and calls
  • Non-Executive Director attended All Employee meeting and reviewed survey results
  • Non-executive directors participated in site visits
  • Evolved ‘Six Mindsets for Success’ to enhance Group culture
  • Rolled out intelligent learning platform
  • Conducted inclusivity education for Top 300 management
  • Monitored Diversity and Inclusion policy implementation
  • Supported work from home and hybrid work arrangements
  • Reviewed succession planning
  • Expanded safety management system to 27 additional manufacturing locations

Governance Achievements

  • Established Executive Risk Committee
  • Enhanced risk management framework
  • Group-wide refresh of functional risk registers
  • Adoption of regional organisational structure
  • Comprehensive review of entity-level controls
  • Revised capital allocation policy
  • Progressive dividend policy
  • Share buyback programme

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050
Medium-term Goals:
  • Grow revenue to >€4.5 billion by 2030
  • Return to double-digit Adjusted EBIT margin
  • Reduce Scope 1 & 2 emissions by 50% by 2030 (vs 2021 baseline)
  • Reduce Scope 3 emissions by 30% by 2030 (vs 2021 baseline)
  • 90% landfill avoidance and 80% recycling rate for waste materials by 2030
Short-term Goals:
  • Grow revenue to €3.8–4.2 billion by 2026

Environmental Challenges

  • High inflation
  • Volatility in customer production schedules
  • UAW strike
  • Geopolitical uncertainties
  • Supply chain disruptions
  • Transition to EVs
  • Competition and customer pricing pressure
  • Talent attraction and retention
  • Critical cyber events
  • Climate change impacts (heat stress, etc.)
Mitigation Strategies
  • Cost reduction actions
  • Commercial recoveries from customers
  • Business continuity planning
  • Geographic diversification
  • Dual sourcing
  • Research and development into alternative materials
  • Investment in EV technologies and product development
  • Competitive incentive arrangements for employees
  • Diversity and inclusion initiatives
  • Skills-focused training and development
  • Succession planning
  • Cybersecurity programme
  • Regular monitoring of geopolitical risks
  • Footprint management
  • Renewable energy procurement
  • Energy conservation programmes

Supply Chain Management

Responsible Procurement
  • Global Supplier Requirements Manual
  • Supplier Portal
  • Purchasing terms and conditions
  • Sustainable Purchases policy

Climate-Related Risks & Opportunities

Physical Risks
  • Heat stress
  • Drought
  • Flooding
  • Sea level rise
  • Changing water availability
Transition Risks
  • Vehicle electrification (decline in ICE demand)
  • Changes in plastic and metal prices
  • Changes in carbon pricing and energy costs
Opportunities
  • Increased demand for thermal products in EVs

Reporting Standards

Frameworks Used: TCFD, SBTi

Sustainable Products & Innovation

  • Thermal management systems for EVs
  • Lightweight materials
  • Modules & Systems