Climate Change Data

Johnson Electric Holdings Limited

Climate Impact & Sustainability Data (2023-04-01 to 2024-03-31)

Reporting Period: 2023-04-01 to 2024-03-31

Environmental Metrics

Total Carbon Emissions:146,073 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:28,457 tCO2e/year
Scope 2 Emissions:117,616 tCO2e/year
Scope 3 Emissions:Not disclosed
Renewable Energy Share:43.9% (excluding grid mix)
Total Energy Consumption:3,085,604 GJ/year
Water Consumption:2,622 megalitres/year
Waste Generated:108,477 tons/year
Carbon Intensity:38.3 tCO2e/US$ million (Scope 1 & 2)

ESG Focus Areas

  • Climate Change
  • Diversity, Equity & Inclusion
  • Corporate Governance
  • Supply Chain Sustainability
  • Employee Well-being
  • Community Engagement

Environmental Achievements

  • Reduced absolute carbon emissions (Scope 1 & 2) by 52.7% compared to FY20/21 baseline, surpassing the 2030 target of 42% reduction.
  • Doubled renewable energy usage to 43.9% from 21.6% in the previous year.
  • Maintained zero waste to landfill.
  • 93.4% of waste recycled.
  • Reduced water withdrawal intensity per sales by 2.8%.

Social Achievements

  • Launched a comprehensive global wellness program and organized more than 100 activities during Safety and Wellbeing Month.
  • 100% of new staff-level employees completed online ethics training.
  • Unconscious bias training completed by over 500 leaders and HR staff.
  • Held twice-yearly reviews to identify and support high-potential female employees.
  • More than 180 JEnerations community events in FY23/24.

Governance Achievements

  • Corporate headquarters and 2 operating sites achieved TISAX accreditation.
  • Extended compulsory ethics training to include all manufacturing operators.
  • Comprehensively assessed supply chain emissions and identified areas to improve.
  • Tracked top 300 suppliers’ ESG performance.

Climate Goals & Targets

Long-term Goals:
  • Net-zero value chain global emissions by 2050
Medium-term Goals:
  • Reduce carbon emissions from operations by 42% (Scope 1 and 2) by 2030 from a FY20/21 baseline.
  • Reduce the intensity per sales of purchased energy consumption by 15% by 2030
  • 80% of total spending from suppliers using 100% renewable energy by 2030
  • Adopt green procurement concepts for sourcing 80% raw materials by 2030
  • Reduce usage of cardboard and polystyrene by 2030
  • Extend Johnson Electric’s safety culture, chemical safety and industrial hygiene initiatives to all suppliers by 2025
Short-term Goals:
  • 100% renewable energy across all operations by 2025 (as available and feasible)
  • Reduce water withdrawal intensity per sales by 30% by FY25/26
  • Reduce water consumption intensity per sales by 30% by FY25/26
  • Reduce total waste intensity per sales by 10% by FY25/26
  • Reduce hazardous waste intensity per sales by 20% by FY25/26

Environmental Challenges

  • Supply chain disruptions
  • Production stability challenges during initial start-up in Jiangmen, China
  • Higher levels of non-conforming material escaping to some customers (Jiangmen relocation)
  • Increased Scope 1 carbon emissions due to increased production of powder-metal products requiring natural gas.
  • Labor scarcity challenges
Mitigation Strategies
  • Developing a diverse manufacturing footprint to increase resilience and reduce reliance on any single site.
  • Resolving production stability issues in Jiangmen, returning customer quality performance to pre-relocation levels.
  • Purchasing new electric furnaces to replace natural gas furnaces.
  • Replacing natural gas with biomethane at Hirson, France site.
  • Helping warehouses boost throughput with TrueDrive™ Dynamic Zone Control (DZC) MDR and VersaSort™ Modules.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Sustainable procurement policy
  • Supplier ESG assessment (top 300 suppliers)
  • Supplier Code of Conduct
  • Responsible minerals management (3TG and cobalt)

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Flooding
  • Rising sea levels
Transition Risks
  • Regulatory changes
  • Market shifts
  • Increased costs for meeting requirements
  • Reduced access to green financing
Opportunities
  • Development of energy-efficient products
  • Increased demand for new energy products

Reporting Standards

Frameworks Used: GRI, SASB, HKEX ESG Reporting Guide

Certifications: ISO 14001, ISO 45001, ISO 50001, IATF 16949, ISO 9001, ISO 13485, IECQ QC 080000, TISAX

Third-party Assurance: Hong Kong Quality Assurance Agency (HKQAA)

UN Sustainable Development Goals

  • SDG 8: Decent Work and Economic Growth
  • SDG 9: Industry, Innovation and Infrastructure
  • SDG 12: Responsible Consumption and Production
  • SDG 3: Good Health and Well-being
  • SDG 4: Quality Education
  • SDG 11: Sustainable Cities and Communities
  • SDG 13: Climate Action
  • SDG 17: Partnerships for the Goals

Strategies and goals aligned with SDGs; performance targets incorporated into annual incentive pay.

Sustainable Products & Innovation

  • Products that reduce greenhouse gas emissions and energy consumption
  • Lightweight, high-power-density motion solutions
  • Electric vehicle components
  • Energy-efficient liquid cooling pumps for data centers
  • Osprey Light Electric Oil Pump for eAxles
  • Integrated Thermal Management System (ITMS) for EVs
  • Power Door Opener (PDO)

Awards & Recognition

  • HKQAA Sustainability Rating and Research: A+
  • ESG Leading Enterprise 2023
  • Leading Environmental Initiative 2023
  • EcoVadis Silver Medal
  • MSCI ‘A’ rating
  • Sustainalytics ESG Risk Rating of 17.8 (low risk)
  • CDP ‘B’ score for climate change
  • Caring Company Award (Hong Kong Council of Social Service)