Climate Change Data

GRAMMER AG

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

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:Not disclosed
Scope 1 Emissions:13,875 t (2019)
Scope 2 Emissions:133,594 t (2019)
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

  • Good corporate governance
  • Compliance
  • Data security
  • Sustainable product development
  • Material efficiency
  • Customer safety and health
  • Environmental footprint
  • Social concerns
  • Products
  • CO2 emissions
  • Energy and resources
  • Waste
  • Working conditions and human rights
  • Sustainable procurement of commodities
  • Employee matters
  • Social matters
  • Employee satisfaction
  • Health and safety
  • Diversity and equal opportunities
  • Responsibility as a Corporate citizenship

Environmental Achievements

  • Upgraded VOCs processing equipment at GRAMMER Interior Co. Ltd, Changchun (China) & GRAMMER System GmbH, Bremen (Germany) to comply with regulations and improve the working environment.
  • Generated 180 ideas to improve carbon footprint at GRAMMER System GmbH, Bremen (Germany), with ten currently being implemented.
  • Reduced the use of release agents during foaming by more than 30% through targeted technology initiatives.

Social Achievements

  • GRAMMER CZ s.r.o., Tachov (Czech Republic) employees collected CZK 31,654 (approx. € 1,222.57) for a colleague's son with muscular dystrophy.
  • GRAMMER Interior Components GmbH, Hardheim (Germany) raised € 2,700 through a Christmas campaign (handmade face masks) to support a regional children’s hospice.

Governance Achievements

  • Revised GRAMMER code of conduct in 2020 to strengthen aspects such as human rights, rejection of forced labor and child labor, freedom of association, and data protection.
  • 20% of all employees participated in biannual compliance and cartel law training.
  • ISO 27001 certification achieved in December 2019 for information security.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Reduce CO2 emissions (Scope 1 & 2) by 50% by 2030 (Baseline year 2019).
  • 30% reduction of CO2 emissions in our global supply chain by 2030.
Short-term Goals:
  • Certify all GRAMMER production sites in accordance with ISO 14001 by 2022.
  • Implement an energy management system in accordance with ISO 50001 across all GRAMMER production sites by 2022.
  • Implement compliance audits at sites with compliance/corruption risks by the end of 2022.
  • Germany-wide introduction of data protection training on the new e-learning platform by 2022.
  • Implement the occupational safety and health management system certified in accordance with ISO 45001 at all sites by the end of 2022.

Environmental Challenges

  • Supply chain disruptions (implied)
  • Achieving carbon neutrality throughout the entire value chain
  • Ensuring compliance and preventing corruption across all global sites
Mitigation Strategies
  • Implemented a uniform Group-wide risk management system.
  • Launched the strategic initiative “Green Company” focusing on environmental and sustainability aspects.
  • Established a “Risk Management and Corporate Social Responsibility” position in the supply chain management system.
  • Implemented a supplier code of conduct and supplier newsletter.
  • Regular compliance audits performed by Internal Auditing.

Supply Chain Management

Supplier Audits: 39 plants underwent compliance audits between 2017 and 2019

Responsible Procurement
  • Supplier code of conduct published and integrated in the supplier portal in 2019.
  • Questions relating to the observance of international legal and ethical standards integrated into the tender portal in 2020.

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Regulatory changes, market shifts
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, ISO 50001, ISO 9001, IATF 16949, ISO/TS 22163, ISO 27001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • 1, 2, 3, 4, 5, 6, 7, 8, 9, 13

Not disclosed

Sustainable Products & Innovation

  • CO2-neutral console (pre-development project)
  • POROLOFT® process for producing air channels based on fiber fabrics using sustainable materials

Awards & Recognition

  • 2020 CSR Award (Environment, Employee, Social Commitment categories)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:Scope 1: 13,875 tCO2e (2019); Scope 2: 136,334 tCO2e (2019)
Scope 1 Emissions:13,875 tCO2e (2019)
Scope 2 Emissions:136,334 tCO2e (2019)
Renewable Energy Share:100% at German sites in 2021

ESG Focus Areas

  • Good Corporate Governance
  • Products
  • Environment
  • Supply Chain
  • Employees

Environmental Achievements

  • Implemented ISO 14001 and ISO 50001 at most sites; aiming for 100% by 2022.
  • Reduced CO2 emissions (Scope 1 & 2) by an unspecified amount; aiming for 50% reduction by 2030 and 100% by 2040.
  • Reduced VOC emissions by up to 70% in some regions through the use of emission-reduced foam materials.
  • Reduced separator consumption in foaming by over 30% through technology initiatives.
  • Reduced waste by 3% through optimizations in leather cutting.
  • Achieved 70.5 t CO2 savings through transport route optimization.

Social Achievements

  • Launched 'Green Company' initiative (to be renamed 'Sustainable Company' in 2022) focusing on energy and resource efficiency, material efficiency, waste reduction and recycling, emission reduction, and green products.
  • Implemented a company-wide risk management system.
  • Established a whistleblower system.
  • Introduced a comprehensive Code of Conduct in eleven languages.
  • Implemented regular compliance training for employees.
  • Conducted a global employee survey with a 75% participation rate, indicating high employee satisfaction and identification with GRAMMER as an employer.
  • Implemented a company-wide risk management system.
  • Established a whistleblower system.
  • Introduced a comprehensive Code of Conduct in eleven languages.
  • Implemented regular compliance training for employees.
  • Conducted a global employee survey with a 75% participation rate, indicating high employee satisfaction and identification with GRAMMER as an employer.
  • Implemented an employee integration management system (BEM) at German sites to support employees returning from long-term illness.
  • Reduced LTIFR (Lost Time Incident Frequency Rate) to 4.04 (from 6.17 in the previous year).
  • Implemented the GRAMMER Academy e-learning platform for white-collar employees.
  • Offered various corporate development programs (DRIVE, FAST LANE, TOP GEAR) for talent and leadership development.
  • Implemented a company-wide risk management system.
  • Established a whistleblower system.
  • Introduced a comprehensive Code of Conduct in eleven languages.
  • Implemented regular compliance training for employees.
  • Conducted a global employee survey with a 75% participation rate, indicating high employee satisfaction and identification with GRAMMER as an employer.
  • Implemented an employee integration management system (BEM) at German sites to support employees returning from long-term illness.
  • Reduced LTIFR (Lost Time Incident Frequency Rate) to 4.04 (from 6.17 in the previous year).
  • Implemented the GRAMMER Academy e-learning platform for white-collar employees.
  • Offered various corporate development programs (DRIVE, FAST LANE, TOP GEAR) for talent and leadership development.

Governance Achievements

  • Overhauled the GRAMMER Code of Conduct in 2020.
  • Established a CSR Council in 2015.
  • Implemented ISO 27001 certification for information security.
  • Successfully audited TISAX objectives in October 2021.
  • Implemented a Supplier Code of Conduct.

Climate Goals & Targets

Long-term Goals:
  • Reduce CO2 emissions (Scope 1 & 2) by 100% by 2040.
Medium-term Goals:
  • Reduce CO2 emissions (Scope 1 & 2) by 50% by 2030.
Short-term Goals:
  • Implement ISO 14001 and ISO 50001 at all production sites by 2022.
  • Implement energy monitoring in all production plants by 2022.
  • Introduce ISO 50001 energy management system in all GRAMMER production sites worldwide by the end of 2022.
  • Determine Scope 3 emissions by the end of 2022.
  • Implement a global regranulation strategy for plastics.
  • Reduce the use of polyol and isocyanate.
  • Increase the utilization rate of upholstery materials through digitalization technology.
  • Reduce separator consumption in foaming further.
  • Introduce a data protection training course as e-learning within the GRAMMER Academy by 2022.
  • Conduct compliance audits at sites with compliance/corruption risks by the end of 2022.
  • Implement occupational health and safety management system according to ISO 45001 at all production sites by the end of 2022.

Environmental Challenges

  • Environmental risks (addressed through ISO 14001 and ISO 50001).
Mitigation Strategies
  • Implementation of ISO 14001 and ISO 50001 environmental and energy management systems.
  • Implementation of a company-wide risk management system to identify and mitigate risks early.

Supply Chain Management

Supplier Audits: 3 sites audited in 2021

Responsible Procurement
  • Supplier Code of Conduct
  • Conflict minerals management
  • Inclusion of CO2 emission values in awarding processes
  • Use of IMDS (International Material Data System)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 9001, IATF 16949, ISO/TS 22163, ISO 14001, ISO 50001, ISO 27001, ISO 45001 (partially implemented)

UN Sustainable Development Goals

  • Unspecified five SDGs

Sustainable Products & Innovation

  • POROLOFT® process for producing fiber-based air channels with sustainable materials.
  • Lightweight design innovations.
  • Use of recycled materials.

Awards & Recognition

  • GRAMMER Corporate Social Responsibility (CSR) Award

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:67103 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:14340 tCO2e/year
Scope 2 Emissions:52863 tCO2e/year
Water Consumption:0.151 m3/million EUR revenue

ESG Focus Areas

  • Climate protection
  • Customer focus
  • Innovation and digitalization
  • Sustainability
  • Employer of choice

Environmental Achievements

  • Reduced Scope 1 and 2 CO2 emissions by 2.0% compared to the previous year's absolute values and 8.0% in relation to revenue. On track to reduce Scope 1 and 2 CO2 emissions by 25% by 2025 and 50% by 2030.

Social Achievements

  • Improved EcoVadis rating from 56 to 58 points (out of 100). Improved CDP climate protection rating to B and water security rating to B-. Launched Next Generation Day to engage children of employees.
  • Reduced accident frequency rate (LTIFR) from 3.33 to 2.27.

Governance Achievements

  • Implemented the Lieferkettensorgfaltspflichtengesetz (German Supply Chain Due Diligence Act). Established a Chief Compliance Officer (CCO) position. Improved data protection training.

Climate Goals & Targets

Long-term Goals:
  • Reduce Scope 1 and 2 CO2 emissions by 100% by 2040.
Medium-term Goals:
  • Reduce Scope 1 and 2 CO2 emissions by 50% by 2030. Achieve an operating EBIT margin of more than 5% by 2025. Increase revenue to EUR 2.5 billion by 2025. Achieve 100% green electricity at all locations by 2025. Increase the percentage of women in global top management to 20% by 2030. Reduce carbon emissions within the global supply chain (upstream) by 20% by 2030 compared with the baseline year of 2021.
Short-term Goals:
  • Reduce Scope 1 and 2 CO2 emissions by 25% by 2025.

Environmental Challenges

  • Lower than expected operating earnings due to volume mix effects, higher costs from volatile capacity utilization, foreign exchange losses, and increased personnel expenses. Americas region underperformed.
  • Macroeconomic and industry-specific uncertainties, including geopolitical risks (war in Ukraine and Middle East), inflation, and supply chain disruptions.
  • Lower than expected volume growth in Americas, one-off effects from plant closures and machine transfers.
Mitigation Strategies
  • Initiated the “Top 10 Measures” program to increase profitability in EMEA and reduce costs globally. Focus on turning around the Americas region and optimizing earnings.
  • Implementing cost reduction measures and efficiency improvements.
  • Localization projects, in-sourcing, dual-sourcing strategies, and monitoring critical suppliers.

Supply Chain Management

Responsible Procurement
  • Supplier Code of Conduct, ESG risk management platform, use of renewable energies by 2025, Nomination Tree initiative.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, ISO 50001, ISO 45001 (in progress)

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 13 (Climate Action)

Reducing CO2 emissions, using renewable energy, sustainable product development.

Sustainable Products & Innovation

  • Modular center consoles, electric air vents, new seat suspension concepts.