Climate Change Data

Stoneridge, Inc.

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:1,472,962 tCO2e/year (Scopes 1, 2, and 3)
Scope 1 Emissions:991 tCO2e/year
Scope 2 Emissions:15,195 tCO2e/year
Scope 3 Emissions:1,456,776 tCO2e/year
Water Consumption:53 Megaliters/year

ESG Focus Areas

  • Climate Change
  • Water Security
  • Waste Management
  • Diversity, Equity, and Inclusion (DEI)
  • Supply Chain Responsibility
  • Health and Safety
  • Corporate Governance
  • Business Ethics

Environmental Achievements

  • Achieved 18.6% reduction in Absolute Scope 1 and Scope 2 GHG emissions by 2023 against a 2019 baseline (exceeding the 15% target set for 2025)
  • Reduced water withdrawal per equivalent employee by 3.8% from 2021 baseline in Juarez, Mexico
  • 100% renewable electricity used in Manaus manufacturing site through I-REC certificates
  • Solar panels in the Netherlands reduced CO2 emissions by 266,248 kg

Social Achievements

  • Launched global DEI employee survey and piloted a regional DEI committee
  • Rolled out Unconscious Bias training to the Board of Directors and salaried workforce
  • Zero fatalities within operations since 2018
  • Relaunched Stoneridge Gives Back community engagement program
  • Supported various community initiatives globally (e.g., Operation Backpack, Toys for Tots)

Governance Achievements

  • Established an Environmental, Social, and Governance (ESG) Steering Committee in 2020
  • Established a Global DEI Steering Committee and DEI strategy in 2021
  • Added three new directors to the Board in 2023, increasing board diversity
  • Updated Audit Committee and Compliance and Ethics Committee Charters in 2023
  • Expanded Code of Conduct to include a standalone Global Human Rights and Working Conditions Policy

Climate Goals & Targets

Medium-term Goals:
  • Conduct a climate scenario analysis within the next two years
  • Evaluate green energy procurement options in the near term (next 3-5 years)
Short-term Goals:
  • Maintain 15% reduction of Absolute Scope 1 and Scope 2 GHG Emissions by 2025 against a 2019 baseline

Environmental Challenges

  • Transition risks associated with the shift to a lower-carbon economy (e.g., regulatory changes, market shifts)
  • Physical risks from severe weather events impacting supply chains and operations
  • Meeting increasingly stringent global emissions regulations
  • Maintaining a safety-focused culture across a global workforce
Mitigation Strategies
  • Investing in drivetrain-agnostic products to adapt to market changes and evolving emissions requirements
  • Implementing an Enterprise Risk Management (ERM) program to identify, assess, and manage climate-related and other risks
  • Conducting supplier audits and implementing risk mitigation plans
  • Implementing global machine safety standards and providing continuous safety training

Supply Chain Management

Supplier Audits: Audits during onboarding and ad hoc basis

Responsible Procurement
  • Global Quality Agreement
  • Supplier Code of Conduct
  • Sustainability expectations for suppliers (including ISO 14001 compliance)

Climate-Related Risks & Opportunities

Physical Risks
  • Severe weather events
  • Natural disasters
  • Supply chain disruptions
Transition Risks
  • Regulatory changes impacting vehicle emissions and fuel efficiency
  • Market shifts towards electrification and shared mobility
Opportunities
  • Development of energy-efficient products
  • Growth in the electric vehicle market

Reporting Standards

Frameworks Used: SASB, TCFD, CDP, UN SDGs

Certifications: ISO 14001:2015 (all manufacturing facilities), ISO 45001:2018 (Tallinn, Estonia site)

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 8 (Decent Work and Economic Growth)
  • Goal 9 (Industry, Innovation, and Infrastructure)
  • Goal 12 (Responsible Consumption and Production)
  • Goal 13 (Climate Action)

Stoneridge's initiatives contribute to these goals through energy efficiency improvements, responsible supply chain management, sustainable product development, and emissions reduction efforts.

Sustainable Products & Innovation

  • Integrated Park Module (IPM)
  • Drive Unit Clutch Actuator (DUCA)
  • MirrorEye® Camera Monitor System

Awards & Recognition

  • EcoVadis Bronze Rating
  • Stoneridge Asia-Pacific Best Employer Award