Climate Change Data

LPKF Laser & Electronics SE

Climate Impact & Sustainability Data (2019, 2020, 2021, 2022, 2023)

Reporting Period: 2019

Environmental Metrics

Total Carbon Emissions:709 tCO2e/year (electricity and gas)
Scope 1 Emissions:406 tCO2e/year
Scope 2 Emissions:303 tCO2e/year
Scope 3 Emissions:204 tCO2e (company cars) + 2,958 tCO2e (flights)
Renewable Energy Share:100% of electricity at German sites
Total Energy Consumption:2,855,632 kWh/year (electricity) + 1,753,252 kWh/year (gas)
Water Consumption:4,801 m3/year
Waste Generated:127.4 tons/year

ESG Focus Areas

  • Value creation
  • Employees
  • Society
  • Environment
  • Quality

Environmental Achievements

  • 709 t of CO₂ emissions (a reduction of 56% over the past two years) due to conversion to green electricity.
  • Reduced gas consumption at Suhl site (60.98 t pellets in 2019 vs 72.86 t in 2018).

Social Achievements

  • Achieved an error rate of 48 (target was not to exceed 50), improving product quality.
  • Launched an employee stock program with 47.7% participation rate at German locations.
  • Implemented idea management system leading to cost reductions and efficiency improvements.
  • Five reportable accidents with 89 days lost due to accidents.

Governance Achievements

  • Introduced a Group-wide mandatory online compliance training for all employees.
  • Established a whistleblowing management system.
  • No incidents of corruption reported.

Climate Goals & Targets

Short-term Goals:
  • Maintain an R&D budget of approx. 10% of revenue.

Environmental Challenges

  • High CO2 emissions from business travel (3,162 t of CO₂ in total).
  • Increased waste volume (127.4 t in 2019 vs 101.98 t in 2018) due to higher production capacity utilization.
  • Potential risks associated with the development of new laser-based technologies.
Mitigation Strategies
  • Switching to green gas at Fürth and Garbsen sites (January 1, 2020).
  • Measures to reduce the number of flights, combine individual trips, and increase use of video conferences.
  • Replacing domestic flights with rail travel.
  • Continual optimization of energy and resource use.
  • Comprehensive information and training on risks associated with laser sources for customers and employees.

Supply Chain Management

Supplier Audits: 100% at the Garbsen site for suppliers set up in the reporting period

Responsible Procurement
  • Suppliers must observe all relevant legislation governing employee relations, environmental protection and occupational safety.
  • Suppliers must comply with the principles of the UN Global Compact initiative.
  • Suppliers must rule out the use of “conflict minerals”.

Climate-Related Risks & Opportunities

Opportunities
  • Lower tool costs and more energy-efficient operations with laser technology.
  • Displacement of chemical processes in certain applications.
  • Increased effectiveness of solar cells.

Reporting Standards

Frameworks Used: GRI

Certifications: DIN EN ISO 9001, ISO 45001

Third-party Assurance: KPMG AG Wirtschaftsprüfungsgesellschaft

Sustainable Products & Innovation

  • LIDE (laser-induced deep etching) technology
  • CleanCut technology
  • Laser systems for the production of thin-film solar modules

Awards & Recognition

  • 2017 Productronica Innovation Award
  • 2019 SID Honorary Award at Display Week

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:456.5 tCO2e/year (electricity and gas)
Scope 2 Emissions:218 tCO2e/year (indirect energy-related)
Scope 3 Emissions:569 tCO2e/year (business travel)
Renewable Energy Share:86.21% (production locations)
Total Energy Consumption:2,968,849 kWh/year (electricity)
Water Consumption:3,758 m3/year (production locations)
Waste Generated:79.2 tons/year (production locations)

ESG Focus Areas

  • Value creation/Quality
  • Employees
  • Environment
  • Society

Environmental Achievements

  • Reduced CO₂ emissions by 37% over the past 3 years (from 709 tons to 456.5 tons)
  • Increased green electricity share to 86.21% at production locations (82.16% including sales companies)
  • Reduced total waste volume from 127.4 tons to 79.2 tons (84.6 tons including sales companies)
  • Implemented water processing plant in new LIDE glass foundry, recycling 99% of rinsing water.

Social Achievements

  • Established employee stock program with 47.9% participation rate
  • Reduced turnover rate from 14.37% in 2018 to 6.41% in 2020
  • Implemented idea management system
  • Provided various health and wellbeing initiatives (fruit, commuter ticket and cycle-to-work offers)

Governance Achievements

  • Introduced a Compliance Code and mandatory online compliance training
  • Established a whistleblowing management system
  • No incidents of corruption reported

Climate Goals & Targets

Medium-term Goals:
  • Carbon-neutral production by 2030
  • Reduce CO₂ emissions from travel by 70% compared with 2019 by 2030
  • 90% green electricity throughout the Group by 2024
Short-term Goals:
  • Achieve >80% recyclable materials by 2025

Environmental Challenges

  • High CO₂ emissions from business travel
  • Maintaining high product quality with short development cycles
  • Potential risks associated with the use of laser sources
  • Maintaining a low error rate
Mitigation Strategies
  • Reducing business travel through remote service visits and video conferencing
  • Continuous improvement of product quality through design changes and error reduction strategies
  • Comprehensive customer information and training on laser safety
  • Continuous monitoring and improvement of error rate (reduced from 70 in 2018 to 34 in 2020)

Supply Chain Management

Supplier Audits: Annual supplier evaluation for 80% of annual purchasing volume

Responsible Procurement
  • Supplier Code of Conduct requiring adherence to UN Global Compact principles, ban on forced and child labor, respect for human and employee rights, compliance with environmental standards and anti-corruption legislation

Climate-Related Risks & Opportunities

Opportunities
  • Development of energy-efficient products and processes

Reporting Standards

Frameworks Used: GRI

Certifications: DIN EN ISO 9001

UN Sustainable Development Goals

  • Decent work and economic growth
  • Industry, innovation and infrastructure
  • Affordable and clean energy
  • Responsible consumption and production
  • Climate action
  • Gender equality
  • Quality education

LPKF's strategy and products contribute to these SDGs.

Sustainable Products & Innovation

  • CleanCut technology
  • LIDE technology
  • Laser systems for thin-film solar modules
  • ARRALYZE technologies for life sciences

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:3,876.89 tCO2e (increase due to inclusion of freight data)
Scope 1 Emissions:191 tCO2e (direct emissions from gas and pellets)
Scope 2 Emissions:93 tCO2e (indirect energy-related emissions from electricity)
Scope 3 Emissions:2,587 tCO2e (other indirect GHG emissions, including freight and travel)
Renewable Energy Share:95% (green electricity)
Total Energy Consumption:5,751,702 MWh
Water Consumption:5,121 m³
Waste Generated:115.3 tons

ESG Focus Areas

  • Value creation/Quality
  • Employees
  • Environment
  • Society

Environmental Achievements

  • Proportion of recyclable materials in total waste volume increased from 54% to 56%
  • Proportion of green electricity at production sites increased to 98.93% (100% by year-end)
  • ISO 14001 certification for environmental management system

Social Achievements

  • ISO 45001 certification for occupational safety management system
  • Turnover rate decreased from 6.41% to 5.02%
  • Increased proportion of women in executive positions to 16.2% (from 14.8%)
  • Four charitable community projects at German sites
  • 31.2% employee participation in community projects

Governance Achievements

  • Established a whistleblowing management system
  • Intensified focus on fraud and money laundering prevention
  • No incidents of corruption reported
  • UN Global Compact membership since November 2021

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon-neutral production by 2030
  • Achieve 100% electric vehicles in company fleet by 2030
  • Reduce CO2 emissions from traveling by 70% by 2030
Medium-term Goals:
  • Reduce carbon footprint per output by 30% by 2025
  • Achieve 25% electric vehicles in company fleet by 2025
  • Increase recycling rate to ≥80% by 2025
Short-term Goals:
  • Reduce carbon footprint per output by 10% by 2023
  • Increase proportion of women in first management level to ≥17% and second management level to ≥23% by June 30, 2022
  • Increase training days per employee to 1.5 by 2025

Environmental Challenges

  • Increased CO2 emissions due to expanded data acquisition (including freight data)
  • Need to reduce non-recyclable materials and hazardous waste
  • Need to further improve recycling rate
  • Risks associated with the development of new laser-based technologies
Mitigation Strategies
  • Initiated measures to reduce gas consumption
  • Plan to conduct an energy audit in 2023
  • Installed a water processing plant in the LIDE foundry to recycle rinsing water
  • Comprehensive safety standards in dealing with hazardous substances
  • Annual substitution survey for hazardous substances
  • Measures to reduce CO2 emissions from travel and freight
  • Plan to make production carbon neutral by 2030
  • Conversion of company fleet to electric vehicles by 2030

Supply Chain Management

Supplier Audits: Annual supplier evaluation for 80% of direct annual purchasing volume; ESG aspects incorporated into evaluation

Responsible Procurement
  • Supplier Code of Conduct requiring adherence to UN Global Compact principles, ban on forced and child labor, respect for human rights, and compliance with environmental standards and anti-corruption legislation

Climate-Related Risks & Opportunities

Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, ISO 45001

Third-party Assurance: KPMG AG Wirtschaftsprüfungsgesellschaft (Limited Assurance)

UN Sustainable Development Goals

  • Goal 7 (Affordable and clean energy)
  • Goal 9 (Industry, innovation and infrastructure)
  • Goal 8 (Decent work and economic growth)
  • Goal 12 (Responsible consumption and production)

LPKF's corporate strategy and products contribute significantly to these goals

Sustainable Products & Innovation

  • CleanCut technology
  • StencilLaser technology
  • LIDE technology
  • Chemical-free semiconductor prototyping
  • Systems for manufacturing thin-film solar modules
  • ARRALYZE technology for high-throughput screening of cells
  • Laser welding of plastics

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:4498 tCO2e/year (3998 tCO2e/year after compensation)
Scope 1 Emissions:112 tCO2e/year
Scope 2 Emissions:95 tCO2e/year
Scope 3 Emissions:Not disclosed
Renewable Energy Share:96.1% of total energy use
Total Energy Consumption:5,661,338 kWh/year
Water Consumption:4428 m3/year
Waste Generated:211.7 tons/year
Carbon Intensity:32 tCO2e/€ revenue in 2022

ESG Focus Areas

  • Value creation/Quality
  • Employees
  • Environment
  • Society

Environmental Achievements

  • Reduced CO₂ emissions per revenue from 41 tCO2e/€ to 32 tCO2e/€
  • Increased proportion of recyclable materials in total waste volume from 56% to 68%
  • Achieved 99.2% green electricity at production locations

Social Achievements

  • Increased proportion of women at first management level from 18% to 27%
  • Implemented employee stock program with 40.45% participation rate
  • Reduced LTIFR from 0.9% to 0.4%

Governance Achievements

  • Established a whistleblowing management system
  • Implemented a compliance code with annual training for all employees
  • Management Board remuneration linked to ESG performance since 2021

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Achieve carbon-neutral production by 2030
  • Reduce CO₂ emissions from traveling by 70% by 2030
  • 100% electric company fleet by 2030
Short-term Goals:
  • Reduce carbon footprint per output by 10% by 2023, 30% by 2025
  • Increase proportion of recyclable materials to ≥80% by 2025
  • Increase training days per employee to 1.5 by 2025

Environmental Challenges

  • High freight and travel emissions
  • Increasing hazardous waste due to LIDE foundry expansion
  • Data limitations for some ESG metrics
Mitigation Strategies
  • Investing in renewable energy sources (PV systems)
  • Implementing measures to reduce travel emissions (video conferencing, remote service)
  • Installing a water processing plant to recycle rinsing water in LIDE foundry
  • Continuous improvement of data collection and reporting

Supply Chain Management

Supplier Audits: >65% of direct purchasing volume assessed; 80% of preferred and key suppliers assessed in detail

Responsible Procurement
  • ESG criteria included in supplier selection, qualification, and annual evaluation
  • Supplier Code of Conduct requiring compliance with UN Global Compact principles
  • Exclusion of conflict minerals

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 9001, ISO 14001, ISO 45001

Third-party Assurance: KPMG AG Wirtschaftsprüfungsgesellschaft

UN Sustainable Development Goals

  • Goal 7 (Affordable and clean energy)
  • Goal 9 (Industry, innovation and infrastructure)
  • Goal 12 (Responsible consumption and production)

LPKF's products and strategies contribute to these goals through energy-efficient solutions, sustainable manufacturing processes, and promotion of resource efficiency in various industries.

Sustainable Products & Innovation

  • CleanCut technology
  • StencilLaser technology
  • LIDE technology
  • Chemical-free semiconductor prototyping
  • Highly efficient thin-film photovoltaics
  • ARRALYZE technology
  • Laser welding of plastics

Awards & Recognition

  • Not disclosed

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:2900 tCO2e/year (net)
Scope 1 Emissions:168 tCO2e/year
Scope 2 Emissions:70 tCO2e/year
Scope 3 Emissions:4162 tCO2e/year
Renewable Energy Share:96.1% of total energy use
Total Energy Consumption:5,305,969 kWh/year
Water Consumption:4,936 m3/year
Waste Generated:219.9 tons/year
Carbon Intensity:23 tCO2e per €1 million revenue (net)

ESG Focus Areas

  • Value creation/Quality
  • Employees
  • Environment
  • Society

Environmental Achievements

  • Reduced CO₂ emissions in the Group (in t)* 2,900 (2023) from 3,998 (2022)
  • Increased proportion of recyclable materials in the total waste volume (in %) 80.7 (2023) from 68.0 (2022)
  • 99.6% green electricity at production locations (2023)

Social Achievements

  • Increased proportion of women at first management level to 36% (2023) from 27% (2022)
  • Decreased sickness rate at production sites to 6.15% (2023) from 6.77% (2022)
  • Launched "LPKF moves you" initiative promoting employee health and social commitment
  • 100% Trainee hiring rate

Governance Achievements

  • Reorganized Supervisory Board
  • ESG targets included in Management Board and senior executive remuneration
  • Became an official member of the UN Global Compact in November 2021

Climate Goals & Targets

Long-term Goals:
  • Carbon-neutral production by 2030
  • 100% electric company fleet by 2030
Medium-term Goals:
  • Achieve 80% recyclable materials in total waste generation by 2025
  • 25% electric mobility in company cars by 2025
  • 30% female executives at management level 1 and 20% at level 2 by 2027
Short-term Goals:
  • Reduce water consumption responsibly
  • Achieve 1.5 training days per employee by 2025
  • Reduce CO2 emissions from traveling by 70% by 2030

Environmental Challenges

  • Reducing CO₂ emissions from travel and freight
  • Maintaining low error rate
  • Managing risks associated with new laser-based technologies
Mitigation Strategies
  • Gradual conversion of vehicle fleet to electric vehicles
  • Commissioning of a new solar installation at headquarters
  • Supporting a climate protection project to build a solar power plant in India
  • Continuous improvement of processes and structures regarding key sustainability aspects through the "Beaming Sustainability" project
  • Idea management system to improve processes and reduce error rate
  • Comprehensive training and information for customers and employees on risks associated with laser sources

Supply Chain Management

Supplier Audits: 64% of direct purchasing volume assessed with ESG questionnaire and spot-checked through audits in 2023; 100% of preferred and key suppliers assessed in detail using LPKF ESG questionnaire

Responsible Procurement
  • ESG criteria considered during supplier selection, qualification, and annual evaluation
  • Supplier Code of Conduct requiring adherence to UN Global Compact principles
  • Requirements for excluding conflict minerals

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 9001, ISO 14001, ISO 45001

Third-party Assurance: Baker Tilly GmbH & Co. KG Wirtschaftsprüfungsgesellschaft

UN Sustainable Development Goals

  • Goal 7 (Affordable and clean energy)
  • Goal 9 (Industry, innovation and infrastructure)
  • Goal 12 (Responsible consumption and production)

Company strategy and products contribute significantly to these goals

Sustainable Products & Innovation

  • CleanCut technology
  • StencilLaser technology
  • LIDE technology
  • Chemical-free semiconductor prototyping
  • Highly efficient thin-film photovoltaics
  • ARRALYZE technology
  • Laser welding of plastics

Awards & Recognition

  • Not disclosed