Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable corporate management
• RATH brand and product development strategy
• Innovations and production processes for optimizing economy and ecology
• Employee well-being

Environmental Achievements

• Optimizing economy and ecology in the production process as well as in the product

Social Achievements

• Open and respectful interaction with colleagues
• 51% women in the workforce (2017)

Governance Achievements

• Internal control system (ICS) with integrated process management and dual control principle
• Regular reporting to the Supervisory Board
• Audit Committee monitoring the effectiveness of the control system

Climate Goals & Targets

Environmental Challenges

• Uncertainties and risks with respect to global and regional crises
• Exchange rate fluctuations impacting operating results
• Recoverability of shares and loans to affiliated companies

Mitigation Strategies

• Strict attention to cost discipline, increasing efficiency and innovation
• Continual monitoring of exchange rates and changes in interest rates
• Annual impairment test on shares in affiliated companies
• Assessment of future revenue and margin developments, discount rates

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Energy Efficiency
• CO2 Emissions Reduction

Environmental Achievements

• Installed a 696 kWp photovoltaic system generating approximately 700 MWh per year, supplying about 20% of daily electricity needs and reducing CO₂ emissions by around 350 tons per year.

Social Achievements

• Installed two e-charging stations and a charging station for e-bikes at the Krummnußbaum plant.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• High energy consumption at production sites.

Mitigation Strategies

• Implementation of a photovoltaic system at the Krummnußbaum plant.

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: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental protection
• Resource and waste management
• Employee well-being
• Gender equality

Environmental Achievements

• Participation in the European Emissions Trading Scheme with sufficient free certificates.
• Membership in Interseroh for waste recycling.

Social Achievements

• filantHRopos project: electronic personnel file went live in Germany.
• k€ 123 spent on staff training (previous year: k€ 92).
• Increase in the overall portion of women in the workforce to 27.8% (previous year: 18.6%).
• Various initiatives to inspire women to take up technical professions.

Governance Achievements

• Compliance with the Austrian Corporate Governance Code.
• Regular meetings of the Supervisory Board and its committees (Audit, Strategy, Remuneration).
• External evaluation carried out by PwC Wirtschaftsprüfung GmbH.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic and global events.
• Sharp increase in freight costs, raw materials, and additives.
• European energy crisis with soaring electricity and gas prices.
• War in Ukraine impacting raw material supply and sales markets.

Mitigation Strategies

• Development of alternative sourcing strategies for raw materials.
• Price increases to cushion cost increases.
• Strengthening of supply chain management.
• Internal financing and maintaining secured liquidity.
• Seeking new raw material suppliers due to the war in Ukraine.

Supply Chain Management

Responsible Procurement

• Avoidance of dependence on individual suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS, Austrian Corporate Governance Code

Third-party Assurance: PwC Wirtschaftsprüfung GmbH

Sustainable Products & Innovation

• Product developments in wear parts for the glass industry and titanium oxide production.
• Two new product lines in the Domestic Fireplaces business.

Environmental Metrics

ESG Focus Areas

• Sustainability
• Energy Efficiency
• CO2 emissions reduction

Environmental Achievements

• Reduced CO2 emissions by 70% in silicon carbide production through the use of electric vacuum nitriding furnaces.
• Reduced CO2 emissions by approximately 350 tons per year through a 696 kWp photovoltaic plant.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Defining the best process parameters for electric firing.
• Expanding the electrical infrastructure (transformer station).
• Installing a cooling system for the two furnaces.

Mitigation Strategies

• Carried out trials in small batches in collaboration with the furnace manufacturer and numerous tests in external laboratories to define optimal process parameters.
• Expanded electrical infrastructure (transformer station).
• Installed a cooling system for the two furnaces.

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: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• CO₂ emissions in production
• CO₂ emissions in the value chain
• Climate change adaptation
• Water withdrawal and consumption
• Contribution to the circular economy / resource use
• Employee development
• Inclusion/diversity in the company
• Changes in workflows due to legal requirements
• Work accidents in production
• Awareness of IT security
• Human rights violations along the supply chain
• Customer loyalty and satisfaction
• IT and data security
• Supply chain stability
• Promotion of a regional European supply chain
• Support for sustainability performance among suppliers
• Access to financing

Environmental Achievements

• Reduced CO₂ emissions by approximately 90% in the Krummnußbaum plant through process optimizations.
• Energy savings of an average of 23% in one of the two natural gas-fired heat treatment furnaces in the Mönchengladbach plant.
• Installation of a 696 kWp photovoltaic system in Krummnußbaum, covering up to 10% of the annual electricity demand and reducing CO₂ emissions by around 350 tons per year.

Social Achievements

• Launched RATH Leadership Excellence Program in 2021, completed in 2023.
• Implemented a digital personnel file for US and Hungarian locations in 2022, completed in 2023 for Hungary and with a full upload of documents for German locations.
• Implemented the Discreet whistleblowing system in 2023/2024.

Governance Achievements

• Conducted a materiality analysis according to the principle of double materiality in preparation for CSRD reporting requirements.
• No cases of suspected corruption or bribery in 2023.

Climate Goals & Targets

Environmental Challenges

• Energy supply security as a major challenge.
• CO₂ emissions along the upstream and downstream value chain.
• Meeting increasing demands for sustainability reporting through CSRD.
• Maintaining access to financing despite increasing sustainability requirements.

Mitigation Strategies

• Focus on reducing energy consumption and increasing the share of renewable energy sources.
• Focus on a European supply chain.
• Integration of sustainability aspects into the existing risk management system.
• Intensified engagement with sustainability issues, fulfilling publication obligations with a high level of ambition.

Supply Chain Management

Supplier Audits: Regular supplier visits and discussions

Responsible Procurement

• Focus on regional European suppliers.
• Integration of social and ecological criteria in supplier selection and evaluation.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products.

Reporting Standards

Frameworks Used: EU Taxonomy Regulation, CSRD

Certifications: ISO 9001:2015, ISO 50001, ISO 14001, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Product portfolio for use in hydrogen atmospheres.

Awards & Recognition

• Not disclosed