Climate Change Data

Environmental Metrics

ESG Focus Areas

• Diversity and Inclusion
• Health, Safety and Wellness
• Environmental Compliance

Environmental Achievements

• Most of our global employees work from home when possible. In areas where it is necessary to have critical, on-site personnel, such as at our manufacturing facilities, additional health and safety measures have been implemented to provide the safest environment possible for these workers.
• Our Huntsville, Alabama facilities and many of our key suppliers are C-TPAT certified. Our products are also certified to certain other customer, industry and privacy standards, including those relating to emission of electromagnetic energy and safety specifications.
• Most of our facilities are certified pursuant to the most current releases of ISO 9001, TL 9000, ISO 14001 and ISO 27001.

Social Achievements

• Established an employee-driven Diversity, Equity & Inclusion (“DE&I”) Task Force.
• Provide our employees with access to various health and wellness benefits designed to enable them and their family members to have affordable access to health, dental and vision insurance.
• Offer an employee assistance program at no charge to employees and their family members. This program provides access to qualified personnel to address various issues such as grief, financial stress, family and emotional issues.

Governance Achievements

• Board of Directors is comprised of six members, two of which are females and three of which are ethnically diverse.
• The Board of Directors has a diversity of skills and experience with respect to accounting and finance, management and leadership, vision and strategy, business operations, business judgment, crisis management, risk assessment, industry knowledge, corporate governance and global markets.
• We have proactively implemented internally and externally focused measures and controls to address FCPA risk.

Climate Goals & Targets

Environmental Challenges

• The ongoing COVID-19 pandemic could adversely affect our business, results of operations and financial condition.
• Our dependence on a limited number of suppliers for certain raw materials, key components and ODM products may prevent us from delivering our products on a timely basis.
• We compete in markets that have become increasingly competitive, which may result in reduced gross profit margins and market share.

Mitigation Strategies

• Implemented enhanced health and safety standards that are in compliance with, or exceed, local, state and federal recommendations and regulations in the U.S. and at our international locations.
• We attempt to manage these risks through developing alternative sources, by staging inventories at strategic locations, through engineering efforts designed to prevent the necessity of certain components and by maintaining close contact and building long-term relationships with our suppliers.
• We continually work to reduce product costs, while focusing on delivery and quality.

Supply Chain Management

Responsible Procurement

• Worldwide sourcing program

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: ISO 9001, TL 9000, ISO 14001, ISO 27001, GDPR

Certifications: ISO 9001, TL 9000, ISO 14001, ISO 27001, C-TPAT

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Commitment to science-based emissions targets (SBTi) NetZero
• Sustainability integral part of product strategy
• Process-based product ecodesign and lifecycle assessment (LCA)
• Optimization of operations, logistics, packaging
• ISO 14001 EMS, ISO 50001 EnMS

Social Achievements

• Dedicated human capital management: Compete for talent, Retain best talent, Focus on engagement and development
• Establishment of employee-driven diversity, equity & inclusion (DE&I) task force to support a diverse and inclusive workforce
• Team Adtran sponsored events
• Adtran offers 20 volunteer hours/year to full-time employees

Governance Achievements

• Strong ESG/sustainability governance -ESG regularly reported to highest governance level
• Establishment of ESG board of directors to assist the board in fulfilling its oversight responsibilities with regard to ESG matters
• Comprehensive ethics and compliance policy, code of conduct and processes
• Dedicated engagement in security – ISO 27001-certified

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supply chain engagement, based on IntegrityNext

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, ISO 50001, ISO 27001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Open and disaggregated access devices lowers both power consumption and the operational cost of scaling the network.
• End-to-end fiber broadband solution reduces heat generation and power consumption with a more sustainable network architectures and technologies
• Intelligent SaaS reduces carbon emissions and footprint with AI-driven insights and pre-emptive alarms
• Evolving PON technology reduces waste footprint and costs with longer lifespan

Awards & Recognition

• EcoVadis -gold rating 2023, platinum 2024

Environmental Metrics

ESG Focus Areas

• Climate change
• Circular economy
• Work-life balance
• Diversity and inclusion

Environmental Achievements

• Reduced total electricity consumption by >49% since 2005 at the Huntsville site.
• Achieved DOE 50001 readiness status in 2023 at Huntsville site.
• Submitted SBTi Net Zero targets in late 2023 (pending approval).

Social Achievements

• Implemented a mobile-working policy for the entire Adtran Holdings, Inc. group.
• Increased vacation days in Germany in 2023.
• Implemented an additional vacation day for Adtran Networks SE employees.

Governance Achievements

• No confirmed cases of corruption or bribery reported in 2023.

Climate Goals & Targets

Environmental Challenges

• Decarbonization of the supply chain.
• Increasing number and complexity of ESG regulations.
• Attracting and retaining talent in a competitive high-tech environment.
• Optimum product lifetime considerations for refurbished products.

Mitigation Strategies

• Initiated bilateral engagement with selected suppliers to support their decarbonization (9 in 2023, target of 25 in 2024).
• Implemented a supplier assessment process to uncover risks and non-compliances.
• Implemented a global flexible working model (planned for 2024).
• Increased vacation days and implemented an unlimited vacation policy for US employees.
• Transparent recruitment activities and DEI training programs for managers.

Supply Chain Management

Supplier Audits: One supplier audited on-site in 2023.

Responsible Procurement

• Supplier Code of Conduct based on RBA framework.
• Supplier assessment process including surveys, risk assessments, and on-site audits.
• Standardized questionnaires and framework agreements with compliance obligations.
• Risk-based monitoring.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme precipitation events
• More consecutive hot days

Transition Risks

• Increased ecodesign costs
• Higher carbon taxes
• Increased costs to comply with ESG regulations

Opportunities

• Revenue from highly-efficient, low-carbon products
• Greening-by-ICT effects

Reporting Standards

Frameworks Used: HGB, ESRS (partially), TCFD, CDP, EcoVadis, ITU-T recommendation L.1470

Certifications: ISO 14001, ISO 50001 (Huntsville site)

Third-party Assurance: PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft (PwC)

UN Sustainable Development Goals

• SDG 9
• SDG 7
• SDG 11
• SDG 13

Products enable communication globally, indirectly support emission savings in other sectors, and contribute to climate action.

Sustainable Products & Innovation

• FSP 3000 F8 products (data-driven solutions for GHG emissions reductions).

Awards & Recognition

• Layer123 award in Network Transformation category