Climate Change Data

Environmental Metrics

ESG Focus Areas

• Employee Aspects
• Environmental Aspects
• Respect for Human Rights
• Combating Corruption and Bribery
• Research and Development
• Supply Chain

Environmental Achievements

• Reduced CO2 equivalents from 2572 tons in 2020 to 2798 tons in 2021 (increase attributed to increased electricity consumption, renewable energy share at 27%)
• Installed solar systems at Wettenberg and Jena sites to reduce reliance on non-renewable energy
• Converted lighting systems at Wettenberg site to more energy-efficient variants
• Water consumption determined for the first time (12,250.53 m³), with risk management tracking water scarcity issues at Corona site

Social Achievements

• Accident rate of 1.1‰ (below the industry average of 3.14‰ in 2020)
• Sickness rate of 4.1% (below the industry average of 5.6% in 2020)
• Employee turnover rate of 5% (significantly below the average manufacturing industry rate of 20.1%)
• Increased number of trainees from 28 in 2020 to 36 in 2021
• Increased spending on training and further education from €768.8k in 2020 to €917.7k in 2021
• Implemented various measures to protect employees during the COVID-19 pandemic, including vaccination campaign and flexible working models

Governance Achievements

• Implemented an anonymous reporting system for compliance violations
• No suspected human rights violations or cases of corruption and bribery reported
• Established a Code of Conduct binding for all employees and managers worldwide
• Intensified sensitization measures through extended regular training on anti-corruption and antitrust law

Climate Goals & Targets

Environmental Challenges

• Increased CO2 emissions due to increased electricity consumption
• Potential water scarcity risks at certain sites
• Potential environmental damage from inadequate environmental standards among suppliers

Mitigation Strategies

• Investment in electric charging stations and electric vehicles
• Installation of solar systems
• Conversion to more energy-efficient lighting
• Targeted selection of suppliers based on environmental aspects
• Water management revision at Corona site
• Further development of supply chain management and supplier policy

Supply Chain Management

Responsible Procurement

• Suppliers are expected to comply with ethical, social, environmental and human rights standards; disclosure of the origin of conflict minerals is supported

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Sustainable Development Goals

Certifications: ISO 9001

Third-party Assurance: Ebner Stolz GmbH & Co. KG Wirtschaftsprüfungsgesellschaft Steuerberatungsgesellschaft (limited assurance)

Sustainable Products & Innovation

• Systems and services that support essential manufacturing processes and technological developments of other industrial companies, contributing to climate protection and adaptation to climate change

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced total heat consumption at Wettenberg site by 30%
• Installed solar panels at Wettenberg and Jena locations

Social Achievements

• Implemented targeted measures to enhance employee satisfaction
• Launched ESG newsletter
• Launched an ongoing process to replace leased vehicles with more efficient models
• Investing in charging stations at German locations
• Provides financial support for employees at German locations through the “JobRAd” company bike scheme

Governance Achievements

• Adopted sustainability strategy
• Acquired MPA Industrie SAS
• Implemented a compliance management system
• Introduced a whistleblower mechanism

Climate Goals & Targets

Environmental Challenges

• Geopolitical uncertainty
• High energy prices
• Supply chain disruptions
• Inflation
• Increased ESG requirements
• Competition for skilled workers
• IT security risks
• Trade barriers (especially US-China relations)

Mitigation Strategies

• Diversified business model
• Forward-looking procurement planning
• Build-up of inventories
• Sustainability strategy
• Measures to decarbonize value added
• Strategic personnel planning
• Investments in IT security
• Regional subsidiaries in key markets
• Alternative sourcing strategies
• Capital goods credit insurance policies

Supply Chain Management

Responsible Procurement

• Planning to implement a Group-side supplier code of conduct
• Regional focus in procurement
• Master agreements with key suppliers
• Larger quantities of parts procured in advance
• Contacts with alternative suppliers

Climate-Related Risks & Opportunities

Transition Risks

• Increased ESG requirements
• Increases in risk premiums for financing carbon-intensive technologies

Opportunities

• Development of energy-efficient products
• Growth potential from sustainability requirements

Reporting Standards

Frameworks Used: GRI

Third-party Assurance: BDO AG, Frankfurt am Main (limited assurance for non-financial statement)

Sustainable Products & Innovation

• c.Bond diffusion bonding system
• Crystal growing systems based on silicon carbide
• Ultrasound systems with AI for failure analysis

Environmental Metrics

ESG Focus Areas

• Climate change mitigation
• Employee matters
• Responsible corporate governance
• Supply chain sustainability
• Human rights

Environmental Achievements

• Reduced CO2 emissions (Scopes 1 & 2, market-based) by 25.4% to 2,479 tCO2e

Social Achievements

• Increased employee count to 730 (+19.1%), reduced employee turnover to 4.0%
• Implemented a whistleblowing system compliant with the German Whistleblower Protection Act
• Improved proportion of women in management positions to 22.4%

Governance Achievements

• Implemented a risk and compliance management system (RCMS)
• Established an internal reporting office for whistleblowers

Climate Goals & Targets

Environmental Challenges

• Geopolitical risks (war in Ukraine, Taiwan dispute, Middle East tensions)
• Cyclical nature of the semiconductor market
• Skills shortage
• Rising ESG requirements and potential additional costs
• Information technology risks (cybercrime, data breaches)

Mitigation Strategies

• Diversification of business into mobility and decarbonization sectors
• Regional subsidiary expansion for alternative supply chains
• Review of training programs and international recruitment
• Clearly defined sustainability strategy and decarbonization efforts
• Investment in IT infrastructure and security measures

Supply Chain Management

Responsible Procurement

• Regional procurement where possible
• Supplier Code of Conduct (planned)

Climate-Related Risks & Opportunities

Transition Risks

• Rising ESG requirements and potential additional costs

Opportunities

• Demand for products in renewable energy and electromobility

Reporting Standards

Frameworks Used: GRI

Third-party Assurance: BDO AG Wirtschaftsprüfungsgesellschaft

Sustainable Products & Innovation

• Crystal growing systems based on silicon carbide
• Metrology and diffusion bonding technologies