Climate Change Data

Environmental Metrics

ESG Focus Areas

• Financial Performance and Resilience
• Corporate Culture and Behavior (CoC)
• ESG/Sustainability Governance
• Talent, Recruitment and Retention
• Human Capital Development
• Employee Occupational Health and Safety
• Climate Change Management (physical and transition)
• Energy Management and Renewable Energy
• Waste Management
• Supply Chain Management
• Supply Chain Climate Transitions
• Responsible Sourcing Critical Raw Materials
• Design for Environment (circular economy)
• Technological Innovation
• Customer Loyalty and Trust

Environmental Achievements

• Reduced GHG emissions by 15% in absolute terms since 2019.
• Reduced carbon intensity by 19% compared to 2019.
• Polish plant achieved Ecovadis Gold status.
• Slovakian factory reduced energy consumption by over 25% for compressed air.
• Beijing plant received the National Green Factory certification.
• Shanghai plant achieved 70% reduction in paper waste compared to 2020.
• Yantai plant reduced hazardous waste discharge weight by 34% compared to 2020.
• Chongqing plant increased sales of Inalfa roof systems for EV models to 30%.

Social Achievements

• Actively encouraged women into engineering and leadership roles, resulting in better gender balance across European organization.
• Nearly all plants achieved green status in 2022.
• Zero safety incidents in Beijing plant.
• Improved CSR ESG score for all plants in China.
• Established collaborative relationships with other local companies in China.
• Various charity activities to support refugees, impoverished or sick groups.

Governance Achievements

• Established a sustainability leader role two years ago.
• Sustainability is consistently on the agenda of Board meetings.
• Actively preparing for the EU’s Corporate Sustainability Reporting Directive (CSRD) and the Carbon Border Adjustment Mechanism (CBAM).
• All plants are IATF 16949, ISO 14001 and ISO 45001 certified (with some exceptions noted in the report).

Climate Goals & Targets

Environmental Challenges

• Balancing sustainability with commercial pressures and cost considerations.
• Optimizing logistical streams to minimize global shipping.
• Material recyclability to meet customer requirements.
• Regional variations in regulations and infrastructure for renewable energy.
• Volatile demands from COVID-19 lockdowns in China.
• Increased energy and material costs.
• Chips shortages.
• Availability of green energy in China.
• Separating and quantifying specific types of power used.
• Challenges in tracking GHG emissions from purchased goods in the supply chain.

Mitigation Strategies

• Implementing cost control measures and economic recovery compensation from customers.
• Optimizing processes and design to reduce waste and energy consumption.
• Investing in energy efficiency and recyclable materials.
• Collaborating with suppliers for responsible sourcing and circular economy principles.
• Exploring innovative materials and designs through R&D.
• Purchasing EAC green certificates to cover CO2 emissions.
• Investigating (V)PPA and solar panels for long-term renewable energy plans.
• Focusing on priority issues and sectors in direct contact with suppliers.
• Developing and selecting sustainable materials for product development.
• Working with specialist companies to develop recycled plastic that meets automotive standards.

Supply Chain Management

Supplier Audits: 145 suppliers assessed in 2022.

Responsible Procurement

• Supplier Code of Conduct.
• Requirements for QHSE management systems (IATF 16949, ISO 9001, ISO 14001, ISO 45001, and ISO 27001 or similar).
• Responsible sourcing of conflict minerals.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (impacting gas consumption in the USA).

Transition Risks

• Changes in regulations.
• Market shifts towards electric vehicles.

Opportunities

• Development of energy-efficient products.
• Use of EC glass in roof systems.

Reporting Standards

Frameworks Used: GRI

Certifications: IATF 16949, ISO 14001, ISO 45001, ISO 50001 (some facilities)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Aligned with UN Sustainable Development Goals since 2019.

Sustainable Products & Innovation

• New generation of products with significantly reduced product weight.
• Direct Driven Rollo system with reduced components and weight.
• Package optimized mechanisms tailored for Electric Vehicles.

Awards & Recognition

• Beijing Green Plant Award
• Five-star environment protection award for local companies (Beijing)
• National Green Factory certification (Beijing)

Environmental Metrics

ESG Focus Areas

• Climate Change Management
• Energy Management and Renewable Energy
• Waste Management
• Supply Chain Management
• Responsible Sourcing Critical Raw Materials
• Design for Environment (circular economy)
• Technological Innovation
• Customer Loyalty and Trust
• Financial Performance and Resilience
• Corporate Culture and Behavior
• ESG/Sustainability Governance
• Talent, Recruitment and Retention
• Human Capital Development
• Employee Occupational Health and Safety

Environmental Achievements

• Reduced CO2 Scope 1+2 emissions by 29% compared to 2019 baseline, including renewable energy usage.
• Reduced specific energy consumption (energy per unit of sales turnover/production) year-on-year since 2019.
• Achieved a 43.7% reduction in gas usage in 2023 compared to 2022.
• All EU activities powered by 100% green electricity in 2023.
• Reduced water usage by approximately 6% compared to 2019.

Social Achievements

• Inalfa Korea recognized as an excellent company for non-discriminatory workplace practices.
• Launched a global Cultural Transformation program with four new company values.
• Implemented a comprehensive human development program encompassing training, performance management, and apprenticeship initiatives.
• Implemented a Global Product Safety Sign-Off Policy.

Governance Achievements

• Implemented a new SharePoint platform for disseminating sustainability and ESG information.
• Established a new global team to manage CO2 Scope 3.1 Product Carbon Footprint.
• Invested in LCA software and provided training to develop in-house expertise.
• Updated Code of Conduct, Supplier Code and Speak Up policy.

Climate Goals & Targets

Environmental Challenges

• High energy costs for gas and electricity.
• Increased average Emission Factor for Electric Power (except China and Korea).
• Complexity of assessing the carbon footprint of the supply chain.
• Managing the impact of the Ukraine-Russia conflict on the supply chain.
• Meeting varying customer targets and timelines for sustainability.

Mitigation Strategies

• Implementing measures to reduce waste and enhance efficiency.
• Upgrading to more energy-efficient equipment and implementing LED lighting.
• Prioritized program for assessing the carbon footprint of suppliers.
• Sourcing aluminum produced using hydro energy, with increasing recyclate content.
• Collaborating with partners to develop plastics with substantial recycled content.
• Purchasing renewable energy certificates for all EU production locations.
• Exploring options such as on-site solar energy and participation in wind and solar parks.

Supply Chain Management

Supplier Audits: 153 suppliers assessed in 2023

Responsible Procurement

• Supplier Code of Conduct
• Sustainability Guiding Principles
• QHSE management systems

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, ISO 45001, IATF 16949

Sustainable Products & Innovation

• UFx® Ultra Flat Xperience
• Direct Driven Rollo system