Climate Change Data

Environmental Metrics

ESG Focus Areas

• Customer relationships
• Employee development
• Environmental impact
• Ethical business practices

Environmental Achievements

• Installed solar photovoltaic panels on UK production sites, covering almost 10% of electricity consumed in 2015
• Replaced office equipment with more energy-efficient machines, reducing paper consumption by 120,000 sheets
• Recycled over 84% of yearly waste (approx. 1,160 tons) at UK sites

Social Achievements

• Launched a new learning management system in 2016 for employee training and compliance
• Working with a consultancy firm to benchmark salary levels and improve career development paths
• Maintained a multi-skilled core team to adapt to market fluctuations

Governance Achievements

• Adherence to the Gurit Code of Conduct by Board of Directors, Group Management, and all employees
• Established two permanent committees: Audit and Corporate Governance Committee and Compensation Committee
• Implemented a risk management system with regular reviews and mitigation strategies

Climate Goals & Targets

Environmental Challenges

• Layoffs of 70 employees in UK composite components production due to contract expirations
• Lower build rates in aerospace and marine markets compared to 2014
• Slow adoption of composite materials in new market areas (automotive)

Mitigation Strategies

• Hiring of 80 new employees for balsa wood and tooling businesses
• Continued market penetration strategies in marine and aerospace
• Further material qualification programs with leading car manufacturers and tier-1 suppliers

Supply Chain Management

Responsible Procurement

• Distributor training programs

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Guidelines

Certifications: ISO 14001 (in progress)

Environmental Metrics

ESG Focus Areas

• Health and Safety
• Sustainable Core Materials
• Carbon Neutrality
• Renewable Energy
• Lightweighting

Environmental Achievements

• Increased share of recycled input materials, producing structural PET foam from up to 100% recycled post-consumer material.
• Reduced most toxic raw materials in Gurit’s Formulated Center of Excellence from 19% to 8% (2017-2018).

Social Achievements

• Launched a “safety-first” initiative with a target to reduce workplace accidents by 50% within three years.
• Initiated an Employer Branding initiative.

Governance Achievements

• Defined five new core values including Sustainability.
• Implemented the General Data Protection Regulation (GDPR).

Climate Goals & Targets

Environmental Challenges

• Raw material shortages leading to increased costs and supply bottlenecks.
• Recycling of certain advanced composite materials.
• Achieving On-Time-In-Full (OTIF) rate of 99%.

Mitigation Strategies

• Established a dual-sourcing approach for key raw materials.
• Engaged in research and cooperation projects to improve recyclability of advanced composites.
• Implemented Quality departments at all production sites and Management systems to monitor and manage quality.

Supply Chain Management

Supplier Audits: Ad-hoc basis in 2019; formal process and categorisation tool implemented in 2020.

Responsible Procurement

• Compliance with environmental, health & safety, anti-corruption laws, and human rights; dual-sourcing approach for key raw materials; local sourcing encouraged.

Climate-Related Risks & Opportunities

Physical Risks

• Rise of sea-levels and related flooding
• Interruption of transportation and commuting routes

Transition Risks

• Increasing cost of transportation due to regulatory interventions or market mechanisms

Opportunities

• Increased demand for renewable energy (wind energy) products.

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Kerdyn™ Green (PET core material made from recycled bottles)
• Ampreg™ 3X series, Ampro™ Bio, Spabond 800 series (low-toxicity epoxy laminating range)
• Bcomp’s ampliTex™ and powerRibs™ products (natural fiber reinforcements)

Awards & Recognition

• Seatec Qualitec Technology 2019 Special Mention (AMPRO BIO)
• Composites UK Environmental/Sustainability Award
• Composites UK Innovation in Composite Materials Award
• IW Chamber Business: Technology and Innovation Award
• IW Chamber Business: Green Initiative Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Safety
• Human Rights
• Labor Standards
• Responsible Procurement
• Good Governance
• Community Engagement

Environmental Achievements

• Achieved carbon neutrality in 2021 for directly influenced emissions by switching to 100% renewable electricity and offsetting remaining emissions through a wind farm project in India.
• Reduced SVHCs used in products from 10 in 2019 to 3 in 2020.
• Recycled 9,900 metric tons of PET (825 million post-consumer PET bottles) into structural core PET foam.

Social Achievements

• Launched a 'Safety First' initiative, aiming to reduce workplace accidents by 50% in three years.
• Implemented an Employer Branding initiative to promote a diverse workforce.
• Provided CHF 90,707 in cash and in-kind donations to local communities.

Governance Achievements

• Implemented a new Sustainability Policy in 2020.
• Maintained compliance with the Gurit Code of Conduct.
• No confirmed incidents of corruption.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacted business, particularly in Aerospace and Marine/Industrial sectors.
• Supply chain disruptions due to high demand and raw material shortages.
• Price pressure in the supply chain due to cost reduction targets in the wind energy industry.

Mitigation Strategies

• Implemented cost containment measures.
• Accelerated the closure of the Aerospace plant in Zullwil, Switzerland.
• Implemented a co-location strategy to reduce transportation and increase recycling.

Supply Chain Management

Supplier Audits: Risk-based audits conducted by Global Procurement and Supplier Quality Engineer.

Responsible Procurement

• Compliance with environmental, health & safety, anti-corruption, and human rights laws.
• Sustainability criteria integrated into supplier standards.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Governmental policies affecting demand.
• Price pressure due to cost reduction targets.

Opportunities

• Development of energy-efficient products.
• Growth in renewable energy sector.

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN Global Compact

Certifications: ISO 9001, ISO 14001, ISO 45001 (target for all production sites by 2022)

Third-party Assurance: PricewaterhouseCoopers AG (limited assurance for compensation report)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)

Wind energy business contributes to Goal 7; climate neutrality initiatives contribute to Goal 13; Saipuram wind farm project supports Goals 7, 8, 9, and 13.

Sustainable Products & Innovation

• Kerdyn™ Green PET core material
• Ampreg™ BIO bio-based epoxy
• RENUVO™ UV-curing repair system
• ampliTex™ and powerRibs™ flax fibre reinforcements

Awards & Recognition

• 2020 JEC Innovation Award (Norsepower Rotor Sail)

Environmental Metrics

ESG Focus Areas

• Safety
• Environment
• Social Responsibility
• Good Governance
• Economic Performance

Environmental Achievements

• Achieved climate neutrality for scope 1, 2 and partial scope 3 emissions under the Greenhouse Gas Protocol by sourcing 100% renewable electricity and compensating remaining emissions with a certified wind farm project in India.
• Recycled 1,156 million post-consumer PET bottles into structural PET foam (Kerdyn™ Green).

Social Achievements

• Launched a mental health initiative to support employees.
• Laid the groundwork for diversity, equality, and inclusion goals.
• 1070 employees completed Code of Conduct training.

Governance Achievements

• Improved MSCI ESG Rating from B to BBB.
• Published Supplier Code of Conduct.

Climate Goals & Targets

Environmental Challenges

• Globally reduced demand for wind blades and decreasing demand/price of balsa wood.
• Pandemic-related obstacles (travel restrictions, supply chain disruptions).
• Higher-than-expected ramp-up costs in Mexico.
• Restructuring expenses.

Mitigation Strategies

• Restructured Wind Systems Business Unit.
• Established new facility in Ahmedabad, India and strengthened operations in Mexico.
• Introduced recycled PET to new customers.
• Implemented various programs to support employees during challenging times.

Supply Chain Management

Supplier Audits: Risk-based audits conducted by Global Procurement.

Responsible Procurement

• Supplier Code of Conduct
• Sustainability questionnaires
• ESG risk management system

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core option, UNGC

Certifications: ISO 9001, ISO 14001, ISO 45001

Third-party Assurance: PricewaterhouseCoopers AG

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 12 (Responsible consumption and production)
• Goal 13 (Climate action)

Initiatives contribute to these goals through renewable energy use, waste reduction, circular economy practices, and greenhouse gas emission reduction.

Sustainable Products & Innovation

• Kerdyn™ Green
• AMPRO™ BIO
• SPRINT™ product range

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Circular Economy
• Sustainability
• Community Investment
• Employee Safety
• Supply Chain Responsibility
• Emissions Reduction

Environmental Achievements

• Reduced CO2 emissions by up to 60% using recycled PET foam.
• Initiated Life Cycle Analysis (LCA) for PET and other products to minimize environmental impact.
• Developed Kerdyn™ Green PET, made with up to 100% recycled content.
• Collaborated with INCA Renewtech on hemp-based core material with reduced greenhouse gas emissions, waste, and water consumption.
• Implemented cost-out programs to streamline processes and improve efficiency.

Social Achievements

• Launched "Building a Great Place to Work" initiative with workshops at global sites.
• Implemented a Formulated Ideas Scheme in Gurit UK to maximize employee potential and achieve cost savings.
• Community clean-up initiatives in Italy and Zurich.
• Improved safety measures at Newport site (laser sensors, light curtains).

Governance Achievements

• Implemented a comprehensive chemical safety management system (GOLD FFX).
• Developed a robust supply chain risk mapping system using the SEDEX platform.
• Established a Legal Department to handle legal matters and ensure compliance.

Climate Goals & Targets

Environmental Challenges

• Weaker business with Western wind customers due to lower US market momentum and manufacturer consolidation.
• Inflation affecting energy prices, raw material supply, and costs.
• Data gaps in LCA for upstream materials.

Mitigation Strategies

• Consolidated kitting production in Europe (Spain, Turkey, Denmark).
• Converted Ringkøbing facility into a wind innovation center.
• Initiated cost-out programs.
• Purchased LCA software and datasets to address data gaps.
• Developed a robust supply chain risk mapping system.

Supply Chain Management

Supplier Audits: Rollout of SEDEX platform started in September 2022

Responsible Procurement

• SEDEX platform for supply chain risk mapping
• Sustainability expectations communicated to suppliers

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Kerdyn™ Green PET
• Hemp-based core material (collaboration with INCA Renewtech)

Environmental Metrics

ESG Focus Areas

• Safety
• Environment (including climate change)
• Social Responsibility
• Good Governance
• Economic Performance

Environmental Achievements

• 33% reduction of waste sent to landfill since 2020
• 22% reduction in scope 1 greenhouse gas emissions since 2020
• 7% reduction in partial scope 3 GHG emissions compared with 2020
• 28% renewable electricity consumption in 2023

Social Achievements

• Launched Gurit Sustainability Awards, recognizing Resource Utilization and Local Community initiatives
• 82% of sites involved in at least one local community project
• Roll-out of ‘human rights and forced labor’ training
• Implementation of Gurit Burn Bright mental health initiative

Governance Achievements

• Launched Report-a-Concern platform for anonymous reporting of misconduct
• Revised Code of Conduct and Supplier Code of Conduct
• Implemented anti-corruption training for 68% of employees

Climate Goals & Targets

Environmental Challenges

• Data gaps in sites' quantitative data
• Monitoring resource utilization initiatives due to lack of specific data
• Complexity of supply chain and acquisitions/divestments
• Evolving regulations for harmful chemicals
• Diversity of supplier profiles making sustainability engagement challenging
• Low maturity of infrastructure and supply chain for end-of-life processing
• Lack of data within the industry supply chain limiting LCA process

Mitigation Strategies

• Implementing improvements in data collection processes (e.g., Sulytics)
• Rolling out monthly data frequency to all sites
• Launching initiatives to increase employee engagement (e.g., Sustainability Awards)
• Strengthening internal communication
• Developing due diligence process for responsible sourcing
• Initiating supply chain risk assessment process
• Implementing communication strategy to engage suppliers (e.g., newsletter)
• Developing the Gurit Product Design for Safety and Sustainability (PDSS) guiding principles

Supply Chain Management

Supplier Audits: 81 suppliers included in supply chain risk assessment in 2023

Responsible Procurement

• Supplier Code of Conduct
• Due diligence process
• ESG risk assessment questionnaire
• Sustainability supplier engagement

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, UNGC, TCFD

Certifications: ISO 9001, ISO 14001, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Kerdyn™ PET structural foam (up to 100% recycled PET)
• Ampro Bio, Prime 37, Ampreg 30 and Ampreg 31 resins (bio-based)

Awards & Recognition

• Gold Award from EcoVadis
• A rating from MSCI