Climate Change Data

ADVA Optical Networking SE

Climate Impact & Sustainability Data (2018, 2019, 2021, 2022)

Reporting Period: 2018

Environmental Metrics

Total Carbon Emissions:451,531 tCO2e/year
Scope 1 Emissions:1,014 tCO2e/year
Scope 2 Emissions:5,800 tCO2e/year
Scope 3 Emissions:447,718 tCO2e/year
Renewable Energy Share:27%
Total Energy Consumption:13,251 MWh/year
Water Consumption:9,190 m3/year
Waste Generated:238.1 tons/year
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate Change
  • Circular Economy
  • Employee Development
  • Supply Chain Responsibility
  • Human Rights

Environmental Achievements

  • Improved various areas of holistic sustainability approach
  • Implemented formal environmental design requirements for all new products
  • Increased share of renewable energy to 27% globally
  • Reduced commuting-related emissions by almost 3 tCO2e in Germany through bike-to-work campaign
  • Saved almost 10% commuting for the complete group through home-office arrangement

Social Achievements

  • Launched a global in-house management training program (MTP) with 16 active modules
  • Participated in Girls’ Day in Germany, providing insight into the world of electronics to girls
  • Achieved a Net Promoter Score (NPS) of +52%
  • Maintained a voluntary employee turnover rate of 6.5%
  • Conducted 60 interviews and received almost 800 ratings in nine categories in customer satisfaction survey

Governance Achievements

  • Implemented a robust compliance management system (CMS)
  • Conducted in-person compliance trainings in 5 main sites and several webinars
  • No confirmed incident of corruption or anti-competitive behavior

Climate Goals & Targets

Long-term Goals:
  • Science Based Targets initiative (SBTi) goals: 20% reduction in Scope 1 and Scope 2 GHG emissions per unit of value added by 2032; 30% reduction in Scope 3 GHG emissions per product unit by 2032
Medium-term Goals:
  • Reduce electricity consumption in relevant sites by 2.1% per year by 2020
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Loss of key customers due to failure in demonstrating sustainability leadership
  • Uncompetitive product cost due to sustainability-related requirements
  • Product design quality and regulatory compliance challenges due to constantly changing legislation
  • Circular economy risks due to potentially stringent legal requirements
  • Supply shortages due to environment-related developments and dependencies
  • Global warming's potential impact on national, regional, and global economies
Mitigation Strategies
  • Continuous innovation to create better, smaller, and more efficient products
  • Continuous screening of upcoming legal requirements and related due diligence
  • Proactive actions including participation in related research projects and industry fora
  • Diverse supplier base and business-continuity activities in line with ISO 22301
  • Clear focus on global warming as the number-1 priority
  • Robust strategies and processes for risk mitigation for all major risk areas

Supply Chain Management

Supplier Audits: 5 suppliers re-assessed in 2018

Responsible Procurement
  • Supplier Code of Conduct (based on EICC CoC)
  • Supplier assessment process (survey, risk assessment, on-site audits)

Climate-Related Risks & Opportunities

Physical Risks
  • Supply chain disruptions due to extreme weather
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Green-by-ICT effects (carbon emissions abatement enabled by products)

Reporting Standards

Frameworks Used: GRI Standards 2016 (Comprehensive option), HGB (German Commercial Code)

Certifications: ISO 14001, ISO 50001, ISO 9001, ISO 22301, TL 9000

Third-party Assurance: PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft (limited assurance)

UN Sustainable Development Goals

  • Goal 3 (Good Health and Well-being)
  • Goal 4 (Quality Education)
  • 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)

ADVA's products and initiatives contribute to these goals through various aspects such as energy efficiency, infrastructure development, employee training, and community engagement.

Sustainable Products & Innovation

  • More energy-efficient products

Awards & Recognition

  • MuT award (Employees are the future)
  • British Telecom Game-Changing Challenge (2018)

Reporting Period: 2019

Environmental Metrics

Total Carbon Emissions:307,584 tCO2e
Scope 1 Emissions:1,140 tCO2e
Scope 2 Emissions:5,369 tCO2e
Scope 3 Emissions:307,584 tCO2e
Total Energy Consumption:12,767 MWh
Water Consumption:8,119 m3
Waste Generated:153.7 tons

ESG Focus Areas

  • Emissions and circular economy
  • Employees: Discrimination and harassment
  • Human rights: ADVA’s position on slavery and human trafficking and sustainability in the supply chain
  • Anti-corruption and bribery
  • Product Strategy, Design & Innovation, and Circular Economy

Environmental Achievements

  • Reductions in emissions from car fleet and purchased electricity compared to 2018.
  • Achieved third consecutive EcoVadis Gold rating.
  • Achieved B rating (2018: B minus) in the 2019 CDP assessment.
  • 90% of the commercially relevant product portfolio covered by LCA.

Social Achievements

  • Improved rating for training aspect in the 2019 Employee Satisfaction Survey (ESS).
  • 86% employee response rate in the 2019 ESS.
  • Voluntary turnover rate at 4.6%.

Governance Achievements

  • No confirmed incidents of bribery and corruption.
  • >98% of all employees committed to ADVA’s Group Policies in written form.
  • Risk-based review of >30 new or already existing sales and service partners per year.

Climate Goals & Targets

Long-term Goals:
  • Three SBTi targets (Scope 1, 2, and 3) aiming at reductions of 20% over the target runtime in absolute terms (Scope 1 and 2) and 3% reduction in sold-products use-phase emissions (Scope 3).
Medium-term Goals:
  • No targets set for circular economy until completion of C-SERVEES project in 2022.
Short-term Goals:
  • Significant increase in material-declarations coverage of purchased components.
  • -1.5% per year in electricity consumption in relevant sites by 2020, from a 2015 base year

Environmental Challenges

  • Wrong product strategy leading to higher emissions and less resource efficiency.
  • Potential non-compliance with tightened product regulations.
  • Insufficient support of circular economy requirements of products.
  • Risk of forced labor in the international supply chain.
  • Risk of (alleged) bribery in international markets.
  • Compliance violations by intermediaries.
Mitigation Strategies
  • Strict emission targets via SBTi and stringent product guidelines (ecodesign).
  • Product compliance incorporated at the design and development stages.
  • Participation in EU Horizon-2020 research project C-SERVEES.
  • Robust, risk-based due diligence and continuous monitoring of key suppliers.
  • Dedicated anti-corruption program, compliance department, and regional compliance officers.
  • Robust risk-based due diligence procedures, contractual commitments, and periodic partner reviews.

Supply Chain Management

Supplier Audits: Two suppliers re-audited on-site against sustainability aspects in 2019. Sustainability aspects included in all new and re-audits.

Responsible Procurement
  • Supplier Code of Conduct, modeled on the Responsible Business Alliance (RBA) framework.
  • Risk assessment process including supplier survey, risk assessment, and on-site audits.
  • Screening, qualification, and contracting processes for strategic suppliers.

Climate-Related Risks & Opportunities

Opportunities
  • Green-by-ICT effect (GHG abatement enabled by products).

Reporting Standards

Frameworks Used: GRI Standards: Comprehensive, HGB (German Commercial Code)

Certifications: TL 9000:R6.1/R5.6, ISO 9001:2015, ISO 14001:2015, ISO 22301:2012, ISO 50001:2011

Third-party Assurance: PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft (PwC)

UN Sustainable Development Goals

  • Goal 9: Industry, Innovation and Infrastructure
  • Goal 11: Sustainable Cities and Communities

Products enable global communication and contribute to sustainable infrastructure. Commitment to sustainable cities and communities through smart grids/cities/buildings.

Awards & Recognition

  • Five out of five stars from BRIGITTE magazine for best employers for women in Germany.

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Platinum rating from EcoVadis
  • Gold rating from TIA / QuEST Forum
  • Bronze rating from TIA AVG 04/21 Eco Design
  • ISO 50001 and ISO 14001 certifications
  • Circular-economy processes

Social Achievements

  • Not disclosed

Governance Achievements

  • Not disclosed

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Not disclosed
Mitigation Strategies
  • Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Not disclosed

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO 50001, ISO 14001

Third-party Assurance: EcoVadis, TIA / QuEST Forum

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:321,105 tCO2e
Scope 1 Emissions:937 tCO2e
Scope 2 Emissions:5,393 tCO2e
Scope 3 Emissions:261,341 tCO2e
Total Energy Consumption:12,300 MWh
Water Consumption:4,650 m3
Waste Generated:231.9 tons

ESG Focus Areas

  • Climate Change
  • Circular Economy
  • Employee Satisfaction
  • Information Security
  • Supply Chain Management

Environmental Achievements

  • Reduced energy consumption by ~7% compared to 2021.
  • Achieved 96% portfolio coverage by LCA.
  • Reduced air freight and replaced some with rail transport.
  • Developed plastic-free packaging for certain products.

Social Achievements

  • Achieved a Net Promoter Score (NPS) of 41% (above 30% is considered good).
  • Implemented a New Work Program offering flexible work arrangements.
  • Conducted 20 CSR events globally.
  • Maintained a voluntary turnover rate of 5.7%.

Governance Achievements

  • Achieved a Gold rating in the TIA sustainability assessment for the sixth consecutive year.
  • Achieved EcoVadis Gold rating.
  • Achieved a CDP climate-change assessment rating of A-.
  • Zero severe security breaches in 2022.
  • Carve-out of Adva Network Security GmbH to maintain compliance with German security requirements.

Climate Goals & Targets

Long-term Goals:
  • Net Zero emissions before 2050.
Medium-term Goals:
  • Increase supplier response rate in IntegrityNext to >80%
  • Increase fill rate of material declarations to >80%
  • Achieve NPS of 50%.
Short-term Goals:
  • Achieve SBTi Net Zero targets (jointly with Adtran).

Environmental Challenges

  • Supply chain disruptions due to semiconductor shortage and geopolitical events.
  • Increasing energy consumption in laboratories due to increasing internet bitrates.
  • Turnover rate above the 5% target.
  • Incomplete supplier data in IntegrityNext.
Mitigation Strategies
  • Relocation of parts of the supply chain to Europe (TeraFactory in Meiningen).
  • Implementation of ISO 50001 energy management system and focus on renewable energy.
  • Pay adjustments, LTI program, and lump-sum payment to improve employee satisfaction.
  • Improving automation in IntegrityNext and continued requests for material declarations from suppliers.

Supply Chain Management

Supplier Audits: 5 on-site audits in 2022

Responsible Procurement
  • Supplier Code of Conduct modeled on the RBA framework.
  • Regular supplier self-assessments via IntegrityNext.
  • Screening, qualification and contracting processes for strategic suppliers.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme precipitation events
  • More consecutive hot days, soil-moisture decrease, higher risk of droughts
Transition Risks
  • Higher ecodesign effort and cost
  • Higher ISO 50001 effort and cost
  • Higher carbon taxes
Opportunities
  • Greening-by-ICT effects
  • Carbon-tax savings
  • Revenue through very efficient products

Reporting Standards

Frameworks Used: GRI Standards 2021, TCFD, EU Taxonomy Regulation

Certifications: ISO 9001, ISO 14001, ISO 22301, ISO 50001, TL 9000

Third-party Assurance: PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft (PwC)

UN Sustainable Development Goals

  • Goal 7: Affordable and clean energy
  • Goal 9: Industry, innovation and infrastructure
  • Goal 11: Sustainable cities and communities
  • Goal 13: Climate action

ADVA's products enable communication and contribute to emission savings in other sectors.

Sustainable Products & Innovation

  • Energy-efficient WDM transponders and pluggables
  • Plastic-free packaging

Awards & Recognition

  • TIA Gold rating (6 consecutive years)
  • EcoVadis Gold rating
  • Layer123 Sustainability Award