Climate Change Data

Freudenberg Group

Climate Impact & Sustainability Data (2016, 2022, 2023)

Reporting Period: 2016

Environmental Metrics

ESG Focus Areas

  • Materials
  • Waste
  • Energy
  • Emissions
  • Water
  • Health
  • Compliance
  • Human Rights & Labor
  • Sustainability
  • Health & Safety
  • Environmental Protection
  • Corporate Citizenship

Environmental Achievements

  • Reduced CO2 emissions by 50 percent in PET bottle recycling process at Novedrate, Italy.
  • Reduced energy costs by approximately five percent with high-tech lubricants.
  • Reduced production waste by 20 percent at Colmar, France.
  • Reduced rubber waste significantly with the introduction of cold runner injection molding.
  • Achieved 20 percent material reduction in Vileda products using 90 percent recycled materials.
  • Reduced CO2 emissions by almost 700 tons annually (more than 35 percent reduction) at Vibracoustic facility in Cerkezköy, Turkey by implementing new power units.
  • Up to 70 percent of wastewater purified to drinking water quality using Aquabio technology.

Social Achievements

  • Developed a health-friendly chromium (III) coating replacing toxic chromium (VI).
  • Freudenberg Medical's coated balloon catheters reduce drug amounts needed by two-thirds, minimizing side effects and waste.

Governance Achievements

  • Signed the UN Global Compact in 2014.

Climate Goals & Targets

Environmental Challenges

  • Growing global population and economic growth leading to increased demand for natural resources.
  • Rising energy use and CO2 emissions contributing to global warming.
Mitigation Strategies
  • Minimizing environmental impact from manufacturing processes (Footprint) and maximizing positive impact through sustainable products and services (Handprint).

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Sustainable Products & Innovation

  • New products from used PET bottles
  • High-tech lubricants
  • Recycled materials for sustainable household products
  • Health-friendly chromium (III) coating
  • Gas lubricated mechanical seal (Levitex)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:649,000 tCO2e/year
Renewable Energy Share:30%
Total Energy Consumption:2,583 GWh/year
Waste Generated:12.2 t/million € of sales
Carbon Intensity:55.2 tCO2e/million € of sales

ESG Focus Areas

  • Climate change
  • Diversity & Inclusion
  • Occupational Health and Safety
  • Corporate Citizenship
  • Compliance
  • Human Rights

Environmental Achievements

  • Reduced relative CO2 emissions per € million sales to about 55 tonnes (target for 2025: 65 tonnes)
  • Increased share of renewable energies in total electricity consumption to 30%
  • Freudenberg sites in Denmark, Sweden and Austria purchased 100 percent green electricity by the end of 2022.

Social Achievements

  • Launched the “We all take care” initiative, with a focus on climate protection and sustainability.
  • Donated €3 million in immediate humanitarian aid at the beginning of the war in Ukraine.
  • Supported projects in education and environment through the global e2 program (€18 million total funding since 2015).

Governance Achievements

  • Continued implementation of EU sustainability reporting standards.
  • Regularly reports on the implementation of the ten principles of the UN Global Compact.
  • Revised the Code of Conduct in 2022 to reflect changes in legislation and compliance standards.

Climate Goals & Targets

Medium-term Goals:
  • Achieve climate neutrality by 2045 (Scope 1 and 2).
Short-term Goals:
  • Reduce relative CO2 emissions by 25% by 2025 (Scope 1 and 2).

Environmental Challenges

  • War in Ukraine and its impact on supply chains, energy prices, and raw material availability.
  • High inflation and fluctuations in customer demand.
  • COVID-19 pandemic, particularly in China.
  • Shortage of skilled labor.
  • Rising material and energy costs.
  • Supply chain disruptions.
Mitigation Strategies
  • Sales price increases to offset higher material and energy costs.
  • Agile response to changing market demands.
  • Investments in future technologies, machinery, and equipment.
  • Focus on customer centricity.
  • Continued investments in long-term projects (mobility transformation, digitalization, sustainable solutions).
  • Operational excellence activities to improve processes, services, and products.
  • Implementation of the “Be energy efficient” initiative to uncover energy-saving potential.

Supply Chain Management

Responsible Procurement
  • Focus on sustainable procurement of natural rubber and biotechnical recycling of natural rubber scrap.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events (floods, storms, fires)
Transition Risks
  • Regulatory changes, market shifts in energy and mobility sectors.
Opportunities
  • Development of energy-efficient products and solutions for the energy transition.

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: ISO 14001, ISO 45001

Third-party Assurance: PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft

UN Sustainable Development Goals

  • Goal 3: Good Health and Well-being
  • Goal 7: Affordable and Clean Energy
  • Goal 9: Industry, Innovation and Infrastructure
  • Goal 12: Responsible Consumption and Production
  • Goal 4: Quality Education
  • Goal 8: Decent Work and Economic Growth
  • Goal 10: Reduced Inequalities
  • Goal 13: Climate Action

Freudenberg's initiatives contribute to these goals through various programs and projects related to occupational health and safety, renewable energy, sustainable production, education, diversity and inclusion, and climate action.

Sustainable Products & Innovation

  • DIAvent pressure equalization element; fuel cell sealing solutions for electrolyzers; bio-based binder mixture for roofing membranes; WKA 1200 chamber seal; HX series sealrings; Vileda Looper cordless electric spray mop; HelixFlex TPE tubing; PFAS-free solutions.

Awards & Recognition

  • Automotive News PACE Award 2022 (DIAvent); Altair Enlighten Award 2022 nomination (Seal & Shield); Top Employer awards; Red Dot Design Award; Clean House Award; EcoVadis Silver Medals; Golden Key Award; Silver TBEU Award.

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:605 kt (Scope 1 and 2)
Scope 1 Emissions:181 kt
Scope 2 Emissions:424 kt
Scope 3 Emissions:Not disclosed
Renewable Energy Share:36%
Total Energy Consumption:2,485 GWh
Water Consumption:Not disclosed
Waste Generated:11.8 t/million euro sales
Carbon Intensity:50.8 tCO2e/million euro sales

ESG Focus Areas

  • Sustainability
  • Health, Safety and Environmental Protection
  • Corporate Citizenship
  • Compliance
  • Employees and Diversity

Environmental Achievements

  • Reduced relative CO2 emissions per million euro sales to about 51 tonnes (target for 2025 is 65 tonnes).
  • Commissioned its first microgrid at its Berlin site, helping stabilize the public grid and reduce electricity costs.
  • Commissioned 20 new photovoltaic arrays worldwide, with around 60 more in planning.
  • Reduced electricity consumption by 24 percent at a Changzhou, China site through various energy efficiency measures.
  • Vibracoustic's Taubaté, Brazil site achieved "zero landfill" status.

Social Achievements

  • Launched Freudenberg Future Colleagues program (employee referral program).
  • Improved ergonomics of calibration machine at Vibracoustic in Burgos, Spain, enhancing employee well-being and efficiency.
  • Implemented gamification of HSE training at Freudenberg Home and Cleaning Solutions and Freudenberg Filtration Technologies.
  • Successfully completed site COVID-19 vaccination campaigns.
  • Organized presentations and screenings for preventive healthcare, including skin and bowel cancer screenings.

Governance Achievements

  • Updated online training programs on various compliance issues.
  • Comprehensively revised Code of Conduct in 2022, addressing human rights and climate protection.
  • Completed standardized UN Global Compact questionnaire.

Climate Goals & Targets

Long-term Goals:
  • Become a carbon-neutral company by 2045.
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Reduce relative CO2 emissions by 25 percent by 2025 compared to 2020.

Environmental Challenges

  • Shortage of skilled labor.
  • Filling vacant posts worldwide.
  • High employee turnover in some regions and functions.
  • Consequences of natural disasters (flooding, tornados) at some sites.
  • Security incidents (site closures, blackmailing calls, break-ins).
Mitigation Strategies
  • Organizational changes to fill vacant posts more efficiently.
  • Freudenberg Future Colleagues program.
  • Specific steps at local and regional levels to address high turnover.
  • Strengthening HSE initiatives and emergency preparedness.
  • Implementing security measures.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Not disclosed

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding
  • Tornados
Transition Risks
  • Energy market volatility
  • Regulatory changes
Opportunities
  • Demand for sustainable products
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: UN Global Compact, EU Corporate Sustainability Reporting Directive, EU Taxonomy Regulation

Certifications: ISO 45001, ISO 14001, DIN EN ISO 50001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Freudenberg prioritizes nine of the 17 UN Sustainable Development Goals.

Sustainable Products & Innovation

  • XRANGE battery pack for CO2-free drives
  • ECO range of sustainable carpet backings
  • SurTec chemical cleaning agents for low-temperature degreasing

Awards & Recognition

  • Detroit Free Press Top Workplace (Freudenberg-NOK Sealing Technologies)
  • Top Job Best Employer (Italy)
  • Great Place to Work (Spain and India)