Vitesco Technologies Group AG
Climate Impact & Sustainability Data (2021, 2023)
Reporting Period: 2021
Environmental Metrics
Total Carbon Emissions:12.0 million t CO₂e (location-based) / 11.7 million t CO₂e (market-based)
Scope 1 Emissions:0.028 million t CO₂e/year
Scope 2 Emissions:0.311 million t CO₂e (location-based) / 0.003 million t CO₂e (market-based)
Scope 3 Emissions:11.6 million t CO₂e/year
Renewable Energy Share:100% (external electricity)
Total Energy Consumption:0.76 TWh/year
Water Consumption:1.26 million m³/year
Waste Generated:32,169 tons/year
Carbon Intensity:1.4 kg CO₂e per €1 (location-based) / 1.4 kg CO₂e per €1 (market-based)
ESG Focus Areas
- Clean Mobility
- Climate Protection
- Resource Efficiency and Circularity
- Fair Work and Diversity
- Responsible Sourcing and Partnerships
Environmental Achievements
- 90.6% climate neutrality of own operational activities (CO₂e emissions Scope 1 and 2) in 2021
- 100% of external purchased electricity at relevant production and R&D sites from renewable sources since 2020
- Waste recycling quota of 92.6% in 2021
Social Achievements
- Launched Alliance of Generations for Employee Success (AGES) ERG
- Employee Net Promoter Score (eNPS) of 19 in 2021
- Continued qualification offensive for electrification and e-mobility, with various training programs
Governance Achievements
- Established independent organizational structure for sustainability management
- Integrated selected sustainability performance indicators into Executive Board’s and senior executives’ variable long-term incentives (LTI)
- Established a global whistleblower system (Integrity Line)
Climate Goals & Targets
Long-term Goals:
- 100% climate neutrality of the entire value chain (CO₂ emissions Scope 1-3) by 2040
Medium-term Goals:
- 100% climate neutrality of own operational activities (CO₂ emissions Scope 1 and 2) by 2030
- Increase employee coverage by certifications for environmental and energy management systems to over 90% by 2030
- Increase eNPS to 20 by 2030
Short-term Goals:
- Reduce accident rate to 1.4 by 2025
- Increase share of women in Executive and Senior Executive positions to 20% by 2025
- Increase waste recycling quota to 95% by 2030
Environmental Challenges
- COVID-19 pandemic impact on sales, procurement, and supply chains
- Global financial and economic crisis risks
- Rapid technological change in the automotive industry
- Geopolitical volatility and political upheaval
- Dependence on a limited number of key suppliers
- Fluctuations in raw material and component prices
- Property loss and business interruption due to natural events
- Information technology risks
- Warranty and product-liability claims
- Legal disputes
- Protecting intellectual property
Mitigation Strategies
- Improving cost structure and safeguarding supply chains
- Careful supplier selection and regular monitoring
- Life cycle engineering (LCE) for product development
- Scenario techniques to assess climate change risks and opportunities
- Technical and organizational precautions against IT risks (duplicated data storage, contingency plans, training)
- Insurance coverage for property loss and business interruption
- Global whistleblower system
- Technical compliance management system (TCMS)
Supply Chain Management
Supplier Audits: 90% of strategic suppliers covered by Business Partner Code of Conduct in 2021
Responsible Procurement
- Business Partner Code of Conduct
- Conflict Minerals Reporting Template (CMRT)
- Extended Minerals Reporting Template (EMRT)
- RBA Code of Conduct
Climate-Related Risks & Opportunities
Physical Risks
- Natural hazards (earthquakes, floods, storms, etc.)
Transition Risks
- Accelerated trend toward electrification
- Stringent consumption and emission standards
Opportunities
- Electrification of commercial vehicles
- Faster electrification of vehicles worldwide
Reporting Standards
Frameworks Used: GRI (Core option), UN Global Compact, TCFD, SASB
Certifications: ISO 14001, ISO 50001, ISO 45001, ISO 9001
Third-party Assurance: KPMG
UN Sustainable Development Goals
- Goal 7 (Affordable and Clean Energy)
- Goal 9 (Industry, Innovation, and Infrastructure)
- Goal 11 (Sustainable Cities and Communities)
- Goal 12 (Responsible Consumption and Production)
- Goal 13 (Climate Action)
Initiatives contributing to these goals are described throughout the report
Sustainable Products & Innovation
- EMR3 and EMR4 High Voltage Axle Drives
- High Voltage Box
- Smart Thermal Management solutions
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:10.0 million t CO₂e (market-based)
Scope 1 Emissions:0.016 million t CO2e
Scope 2 Emissions:0.004 million t CO2e (market-based)
Scope 3 Emissions:9.947 million t CO2e
Renewable Energy Share:100%
Total Energy Consumption:0.67 TWh
Water Consumption:1.17 million m3
Waste Generated:29,982 tons
Carbon Intensity:1.08 kg CO2e per € (market-based)
ESG Focus Areas
- Clean Mobility
- Climate Protection
- Resource Efficiency and Circularity
- Fair Work and Diversity
- Business Ethics and Compliance
- Occupational Health and Safety
- Responsible Sourcing and Partnerships
Environmental Achievements
- Reduced total own GHG emissions (Scope 1 and 2) to 0.019 million tons of CO₂e (market-based) in 2023, a decrease of 0.008 million t CO₂e compared to the previous year.
- Achieved 94.2% climate neutrality in own operations in 2023.
- 100% of electricity from renewable energy sources at relevant production and R&D sites.
- Waste recovery quota of 95.2% in 2023.
- Energy reduction of 10.5 GWh achieved from efficiency projects in 2023.
Social Achievements
- Launched resilientMIND mental health program.
- Increased Employee Net Promoter Score (eNPS) to 30 points in 2023.
- Increased share of women in management positions to 17.0% in 2023.
- Reduced unforced fluctuation rate to 6.3% in 2023.
Governance Achievements
- Established a Human Rights Committee.
- Improved ESG ratings from MSCI, Sustainalytics, and EcoVadis.
- Short-term climate targets certified by the Science Based Targets initiative.
Climate Goals & Targets
Long-term Goals:
- Net-zero GHG emissions across the entire value chain (Scope 1 to 3) by 2040.
Medium-term Goals:
- Net climate neutrality of own operational activities by 2030.
- 100% life-cycle orientation for all new products and part numbers by 2030.
Short-term Goals:
- Reduce water demand in high water risk areas by 4% per year (based on revenues) by 2030.
- Reduce water demand in medium water risk areas by 2% annually (based on revenues) by 2030.
- Reduce absolute GHG emissions from own operational activities (Scope 1 and 2) by 100% by 2030.
- Reduce absolute Scope 3 emissions by 25% by 2030.
- Increase waste recovery quota to 95% by 2030.
- Increase the proportion of employees covered by certifications for environmental management systems (ISO 14001 or comparable) and energy management systems (ISO 50001 or comparable) to over 95% by 2030.
- Increase Employee Net Promoter Score (eNPS) to 25 by 2026.
- Raise share of women in management positions to 21% by 2026.
- Reduce accident rate to 1.4 by 2027.
Environmental Challenges
- Supply chain disruptions due to geopolitical crises.
- Data gaps and lack of standardization in calculating product carbon footprint (PCF).
- Remaining data gaps and a lack of standardization in calculating PCF.
- Harmonizing standards and cultivating discussion with employees, customers, and suppliers to create a robust framework of behaviors for sustainability and environmental protection in the US and Canada.
- Achieving 100% coverage of strategic suppliers by the Business Partner Code of Conduct (98.3% achieved).
Mitigation Strategies
- Developed alternative sourcing strategies.
- Joined Catena-X initiative to build a collaborative data ecosystem.
- Implemented in-house sustainability initiatives and focused on greater regulatory consistency.
- Implemented measures to increase the level of coverage when the new Business Partner Code of Conduct was published.
- Systematically pursued and fast-tracked self-assessment with high-risk suppliers.
Supply Chain Management
Supplier Audits: 98.3% of strategic suppliers covered by Business Partner Code of Conduct; 55.8% of high-risk production material suppliers conducted a self-assessment.
Responsible Procurement
- Business Partner Code of Conduct
- RBA Code of Conduct
- Supplier self-assessments
- Third-party audits
- Conflict Minerals Reporting Template (CMRT)
- Extended Minerals Reporting Template (EMRT)
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
- Damage to infrastructure
- Damage to assets
- Risks to employee well-being
- Supply chain disruptions
Transition Risks
- CO2 taxes
- Higher costs for climate-friendly technologies
- Reputational risks
- Increased sustainability requirements
- Market volatility
Opportunities
- Expansion of product portfolio
- Use of renewable energies
- Increased demand for electrification products
Reporting Standards
Frameworks Used: GRI, SASB, TCFD, UN Global Compact
Certifications: ISO 14001, ISO 50001, ISO 45001, ISO 9001
Third-party Assurance: KPMG AG Wirtschaftsprüfungsgesellschaft (limited assurance on selected indicators)
UN Sustainable Development Goals
- SDG 3 (Good Health and Well-being)
- SDG 7 (Affordable and Clean Energy)
- SDG 8 (Decent Work and Economic Growth)
- SDG 9 (Industry, Innovation and Infrastructure)
- SDG 12 (Responsible Consumption and Production)
- SDG 13 (Climate Action)
Initiatives contribute to these goals through various programs and strategies outlined in the report.
Sustainable Products & Innovation
- EMR4 electric axle drive (with magnet-free rotor option)
- High-voltage battery management system
- Transfer molding power module
Awards & Recognition
- Various ESG rating improvements
- Science Based Targets initiative certification
- LinkedIn recognition as a desirable employer