Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Economic
• Governance

Environmental Achievements

• Reduced energy intensity by 5.6%
• Reduced GHG emission intensity by 3.7%
• 88% of Sogefi sites are certified with ISO 14001 standard

Social Achievements

• Injury rate decreased by 23.2% vs. 2014 (4.9%)
• Yearly average training hours per employee: 13.2
• Organized special training on human rights in India for female employees (more than 350 hours)

Governance Achievements

• Established a Code of Ethics
• Implemented a structured Enterprise Risk Management process
• Established two internal committees: Appointments and Remuneration Committee and Control and Risk Committee

Climate Goals & Targets

Environmental Challenges

• Non-recurring expenses of €21.5 million in 2015 (product warranties and restructuring costs)
• Claims in progress by two customers relating to a defective component
• Market weakness in South America

Mitigation Strategies

• Working with employees and suppliers to reduce costs and improve profitability
• Filed a lawsuit against a supplier for defective thermostat
• Outperforming the market in North America

Supply Chain Management

Responsible Procurement

• Environmental certification ISO 14001 advised for suppliers
• Issuing a Code of Business Conduct in 2016

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Guidelines (Core option)

Certifications: ISO TS 16949, ISO 14001 (88% of sites)

Sustainable Products & Innovation

• FRP Coil Springs (40% to 70% less weight, less energy-intensive production)
• Engine oil filtration module with plastic instead of metal casting
• Smart Multi-Way Coolant valve (up to 2% fuel saving)
• Smart flow controlled coolant pump (up to 2.5% CO2 saving)

Environmental Metrics

ESG Focus Areas

• Product Responsibility
• Governance
• Economic and Business
• Human resources
• Social responsibility
• Environment

Environmental Achievements

• Reduced energy intensity by 5.8%
• Reduced GHG emission intensity by 7.5%
• 98% of Group’s production sites certified ISO 14001
• Reduced water withdrawal by 23.9%
• Reduced water discharge by 30.0%
• 82.3% of waste is non-hazardous
• Implemented a cloud strategy reducing carbon footprint by about 350 tons of CO2e
• Reduced CO2 emissions from office equipment replacement by 49.3 tons

Social Achievements

• Provided nearly 130,000 hours of training (+45.9% compared to 2015)
• Increased employees receiving regular performance and career development reviews to 57%
• Implemented various health and safety initiatives across global locations resulting in a stable injury rate
• Supported local communities through initiatives in education, sports, health, research, solidarity, and art & culture

Governance Achievements

• Established a Group Quality Policy
• Approved an Occupational Health and Safety Policy
• Approved a Human Rights Policy
• Approved an Environmental Policy
• Distributed Code of Ethics among 71% of Group’s plants by January 2017
• 13% of Group’s active suppliers signed the Code of Conduct by December 31, 2016 (representing 42% of purchased monetary value)

Climate Goals & Targets

Environmental Challenges

• Risks related to Sustainability: Ethical/Deontological Issues, Public image & reputation, Health & Safety and Environment
• Energy consumption
• GHG emissions
• Waste management
• Water consumption
• Water discharge
• Material use and reusability
• Impact of logistics and transportation
• Attracting top talent

Mitigation Strategies

• Ongoing and systematic evaluations of risk exposure
• Continuous improvement and development of monitoring systems
• Dissemination of a health and safety culture
• Environmental management systems
• Energy reduction projects
• Waste reduction and recycling initiatives
• Water conservation measures
• Wastewater treatment systems
• Optimized transportation flows
• Sustainable packaging
• Unified Communication Framework to reduce business travel

Supply Chain Management

Responsible Procurement

• Environmental certification ISO 14001 advised for suppliers
• Code of Business Conduct
• Conflict Minerals Reporting Template (CMRT) questionnaire

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Guidelines (Core option)

Certifications: ISO 9001, ISO TS 16949, ISO 14001 (98% of production sites)

Sustainable Products & Innovation

• Composite Coil Springs
• Plastic Diesel Fuel Filter using 100% recycled polymer
• MAGNI Air Intake Manifold
• LPA Step2 acoustic devices
• CUSCO water pump
• Air Intake Manifold made with Polypropylene

Awards & Recognition

• Bronze Quality Certification by Caterpillar
• Bronze Quality Certification by Perkins
• The Annual Award for Business Contribution
• Autocomponent of the Year
• Supplier Award from Philips Lighting

Environmental Metrics

ESG Focus Areas

• Climate change
• Supply chain
• Gender equality
• Information security
• Energy management
• Health and safety management
• Strategy & Economic performance
• Innovative and Eco-responsible products / technologies
• Cybersecurity & Data Protection
• Sustainable Water & Waste Management
• Attraction & retention, professional development
• Employees well-being, engagement & satisfaction
• Occupational Health and Safety
• Business Ethics and Integrity
• Product Quality & Customer satisfaction
• Product Safety
• Responsible procurement practices
• Diversity & Equal Opportunity
• Distributed value and impact on local communities

Environmental Achievements

• Reduced CO2 emissions by 1300 tons through solar panel installations in Spain and India.
• 8% of total energy used from renewable sources.
• 89% waste valorization.
• 3 plants certified for energy management (ISO 50001).
• 7 plants certified for health and safety management (ISO 45001).

Social Achievements

• Diffusion of gender equality index to all sites worldwide.
• 18.8 average training hours per employee.
• Accident frequency rate reduced by almost half (from 3.5 in 2021 to 2 in 2022).
• 100% of industrial plants carried out projects aimed at developing local communities.
• Employee satisfaction survey with 79% participation rate and a 64/100 rating.

Governance Achievements

• Deployment of TISAX for >90% Group sites.
• Implementation of an Internal Control System for non-financial information.

Climate Goals & Targets

Environmental Challenges

• Climate change and associated risks.
• Rapid decarbonization requiring operational changes.
• Limited world resources.
• Supply chain disruptions.
• Raw material shortages.
• Non-compliance with ESG criteria.
• Unavailability of qualified HR resources.
• Salary inflation and employee dissatisfaction.
• Ethics violations.
• Risk of non-compliance with anti-corruption regulations.
• IT risks related to cybersecurity.
• IT systems breakdown/failure risk.
• Product reliability risks.

Mitigation Strategies

• Closely following regulatory projects and laws, developing a roadmap to ensure compliance and a sustainable business model.
• Road mapping the action plan to significantly reduce emissions within the next 3 years (aiming at approx –30% in 2026 vs 2021 at iso volumes and mix).
• Investing significantly in R&D.
• Annual assessment of plant exposure to climate risks.
• Multi-supplier strategy to reduce dependency.
• Monitoring systems to recognize potential market changes.
• Greater regionalization in procurement.
• Strengthened supplier selection and monitoring process.
• Implementation of the Group Supplier Portal.
• Systematic and consistent personnel recruitment and development strategy.
• Dedicated succession planning system.
• Appointment of a Communication Director.
• Increased salaries.
• Employee survey to roadmap actions and track results.
• Continuous implementation and update of prevention and protection plans.
• Adoption of the Group's Code of Ethics.
• Adoption and regular updates of the «Organizational, Management and Control Model».
• Global cybersecurity organization.
• Communication campaigns to increase cybersecurity awareness.
• Security internal risk assessments.
• Independent external audits.
• Implementation and maintenance of disaster and continuity plans.
• Annual testing of disaster recovery plans.
• Application of national and international technical reference standards.
• IATF 16949:2016 certification.
• Development of a supplier portal to track the chemical composition of products.
• Implementation of new VPN solution, encryption and labelling of mails and documents, two-factor authentication system, and computer disk encryption.

Supply Chain Management

Supplier Audits: 28 new suppliers accredited in 2022.

Responsible Procurement

• Group Purchasing Sustainability Policy
• Supplier Manual
• Supplier General Information Survey
• Supplier Initial Assessment Checklist
• Group’s Code of Business Conduct
• SOGEFI’s General Purchasing Terms and Conditions
• Declaration on Conflict Minerals
• Conflict Minerals Reporting Template (CMRT)

Climate-Related Risks & Opportunities

Physical Risks

• Damages to company assets
• Labor productivity
• Supply chain disruption

Transition Risks

• Regulatory changes
• Technology innovation

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001, ISO 45001, ISO 50001, IATF 16949:2016

Third-party Assurance: KPMG S.p.A.

UN Sustainable Development Goals

• 10 UN SDGs

Sogefi’s sustainability approach is inspired by the Sustainable Development Goals (SDGs) from the United Nations.

Sustainable Products & Innovation

• EV Cooling plates
• Module Hydrogen+
• HEPA air filters
• Transmission filter
• Fuel cell air cathodes
• Cooling plates and modules for E-Mobility
• Stabilizer bars
• CabinHepa+

Awards & Recognition

• France 2030 grant for EV Cooling plates
• France Normandy region grant for Module Hydrogen+
• CabinHepa+ elected product of the year 2022 in France

Environmental Metrics

ESG Focus Areas

• Climate change
• Innovation and low carbon mobility solutions
• Responsible procurement practices
• Business ethics and integrity
• Optimization of material cycles in industrial processes
• Sustainable Water & Waste Management
• Attraction & retention, professional development
• Employees well-being, engagement & satisfaction
• Occupational health and safety
• Diversity, Inclusion & Equal Opportunity
• Product Quality & Safety
• Customer satisfaction
• Cybersecurity & Data Protection
• Distributed value and impact on local communities

Environmental Achievements

• Increased renewable energy share to 11% of total energy consumed.
• Reduced energy intensity by -1% vs 2022 and -19% vs 2019.
• Waste valorization rate reached 90% in 2023.
• 100% of Group's plants have an IATF 16949:2016 certified quality management system.

Social Achievements

• Employee satisfaction increased to 69% (+3 percentage points from 2022).
• Overall departure rate decreased to 21.7% compared to 23.5% in 2022.
• Average training hours per employee increased to 29.8h.
• 92 projects carried out for local communities.

Governance Achievements

• Implemented ESG Internal Control System and released “Non-Financial Statement Procedure” and “Environmental Material topic procedure”.
• Women make up 44% of the Board of Directors.
• No incidents of corruption reported.

Climate Goals & Targets

Environmental Challenges

• Unpredictability of energy prices.
• Transitional climate change risks (regulatory and technological changes).
• Physical climate change risks (acute and chronic).
• Innovation risk (developing new technologies).
• Sales risk (unfavorable consumer demand).
• Supply chain risks (raw material shortages).
• Human resources risks (talent attraction and retention).
• Labor costs inflation.
• Fire risk.
• Cybersecurity risks.
• Product reliability risks.

Mitigation Strategies

• Investing in renewable energy sources and energy savings equipment.
• Closely following regulatory laws and updates; investing in R&D for e-mobility products; implementing a roadmap to reduce emissions.
• Conducting climate risk assessment; implementing climate physical risk mitigation actions.
• Setting yearly targets for e-mobility products; monitoring target achievement.
• Constant backlog monitoring; close relation with customers.
• Diversifying supplier portfolio; monitoring suppliers' risks.
• Implementing a personnel recruitment and development strategy; conducting yearly employee well-being surveys.
• Close monitoring activities in higher inflation countries; social dialogue with unions.
• Strengthening Group prevention plan (training, engineering controls, recovery plans).
• Implementing an Information Security Management System (ISMS); conducting cybersecurity trainings.
• Implementing quality risk analysis (FMEA); monitoring quality performance and customer satisfaction.

Supply Chain Management

Supplier Audits: 68% of suppliers signed SOGEFI’s Code of Business Conduct; 55% are ISO 14001:2015 certified.

Responsible Procurement

• Group Purchasing Sustainable Development Policy; digitalized supplier evaluation process; Code of Business Conduct; General Terms and Conditions of Purchase; new sustainability criteria (recycled materials, carbon impact reduction, environmental impact reduction).

Climate-Related Risks & Opportunities

Physical Risks

• Floods, wildfires, heat waves, sea level rise, heat stress

Transition Risks

• Regulatory changes, technological changes

Opportunities

• Development of energy-efficient products (e.g., cooling plates and modules for EVs).

Reporting Standards

Frameworks Used: GRI Standards

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

Third-party Assurance: KPMG S.p.A.

UN Sustainable Development Goals

• Not disclosed

Sogefi concentrates its sustainability strategy on ten Sustainable Development Goals (SDGs).

Sustainable Products & Innovation

• Cooling plates and modules for EVs; HEPA air filters; transmission filters; fuel cell air cathodes; innovative mechatronic components.

Awards & Recognition

• Not disclosed