Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate change
• Water management
• Energy consumption
• Occupational health and safety
• Diversity and inclusion
• Supply chain sustainability
• Community engagement

Environmental Achievements

• Reduced CO2 emissions from 738,000 tons to 592,000 tons (although not reaching the 20% reduction target)
• Increased share of renewable energies and heat recovery in total energy consumption to 15% (from 13% in 2014)
• Increased proportion of sea transport from 56% to 72% in GF Piping Systems
• Internally recycled 76% of waste (2014: 80%)
• Reduced waste landfilled or incinerated by 3 percentage points compared to the previous year

Social Achievements

• Reduced corporate-wide accidents by 44% between 2011 and 2015
• Launched "Zero Risk" safety campaign at GF Automotive, resulting in a 26% reduction in work accidents in Q1 2016 compared to the previous year
• Increased number of training days for employees by 10% in 2015
• Filled 70% of vacant senior management positions with internal candidates
• Increased proportion of female employees to 17.3% (from 16.3% in 2014)

Governance Achievements

• Achieved prime status in oekom research AG ranking (C+)
• All production sites certified according to OHSAS 18001
• Implemented e-learning programs on anti-corruption and competition law for employees
• Developed a web-based system to avoid conducting business with sanctioned organizations and individuals
• Introduced a "Compliance Agents" function to identify and assess risks

Climate Goals & Targets

Environmental Challenges

• Water scarcity and the need for clean drinking water solutions
• Climate change and increasingly stringent CO2 emission limits for the automotive industry
• Energy consumption and the need for energy-efficient production processes
• Lack of skilled workforce

Mitigation Strategies

• GF Piping Systems developing resource-saving solutions for water supply and treatment
• GF Automotive focusing on lightweight components and bionic design to reduce vehicle weight and CO2 emissions
• GF Machining Solutions developing energy-efficient machine tools and joining the "Blue Competence" initiative
• GF investing in apprenticeships and training programs to develop its own workforce

Supply Chain Management

Supplier Audits: At least ten sustainability-focused audits per division annually

Responsible Procurement

• GF Supplier Code

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4

Certifications: OHSAS 18001 (all production sites), ISO 50001 (8 energy-intensive sites)

Third-party Assurance: SGS TÜV Saar GmbH

Sustainable Products & Innovation

• Energy-efficient machine tools
• Lightweight components for vehicles
• Corrosion-resistant polyethylene pipes

Awards & Recognition

• oekom research AG prime investment status
• ABB Global Supplier Sustainability Award (GF Automotive, Leipzig)
• IMA Award (GF Automotive, Altenmarkt)
• Newcast Award (GF Automotive)
• CIMT awards (GF Machining Solutions, Beijing)

Environmental Metrics

ESG Focus Areas

• Ethical business conduct
• Resource-efficient and environmentally friendly production
• Eco-design in products and solutions
• Respect for employees and stakeholders
• Sustainable corporate development

Environmental Achievements

• GF Piping Systems won a contract to install 760 km of water pipes in Brazil, expected to save 75 billion liters of water annually.
• GF Casting Solutions focuses on lightweight components, reducing fuel consumption and CO2 emissions.
• GF Machining Solutions' Microlution machines produce high-precision components enabling over 15% gasoline savings during vehicle usage.

Social Achievements

• GF employs 14,678 people in 33 countries, valuing employee diversity.
• GF invested in modern workplaces in Romania, Japan, and Swiss sites.
• GF supports employee development through targeted programs and the GF Academy.
• GF increased the proportion of women in management positions.
• GF's "Walk for Water" raised CHF 500,000 for clean water projects.

Governance Achievements

• GF has a strong and independent Board of Directors.
• GF maintains open communication with shareholders and stakeholders.
• GF implemented a revised performance-based Long-term Incentive (LTI) plan.
• GF implemented clawback and malus provisions to the Long-term incentive plan.

Climate Goals & Targets

Environmental Challenges

• Geopolitical uncertainties affected the global economy, impacting business sentiment.
• Trade tensions between the USA and China, Brexit discussions, and Middle East conflicts created a challenging environment.
• Transformational change in the automotive business led to economic headwinds.
• Significant drop in automotive production in Germany and China.
• Lower demand for capital goods in Europe and the US.

Mitigation Strategies

• Proactive withdrawal from iron casting activities in the European automotive industry.
• Implementation of comprehensive structural and operating measures at GF Casting Solutions.
• Shifting portfolio towards higher margin businesses and services.
• Expansion into higher margin businesses, providing global solutions, and ensuring profitability in Europe.
• Focus on operational excellence and innovation.
• Focus on less cyclical market segments.
• Agility program addressing innovation, speed, and operational excellence.

Supply Chain Management

Responsible Procurement

• Ensuring suppliers represent and follow GF's standards
• Collaboration with suppliers to increase environmental efficiency and reduce risks

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Swiss GAAP FER, Economiesuisse's Swiss Code of Best Practice for Corporate Governance

Certifications: NADCAP certificate (AMotion Center)

Third-party Assurance: PricewaterhouseCoopers

Sustainable Products & Innovation

• Hycleen Automation System
• Turbine Rear Vane (TRV)
• AgieCharmilles CUT P 550 Pro

Awards & Recognition

• First price from the Swiss Institute of Directors for its remuneration system

Environmental Metrics

ESG Focus Areas

• Sustainable products and solutions
• Climate & Resources
• People & Well-being

Environmental Achievements

• Reduced scope 1 and 2 CO2e emissions by 17% compared to the 2019 baseline.
• Reduced the intensity of waste sent to landfill or incineration by 9% compared to the 2018-2020 average.
• Recycled 71% of its waste.

Social Achievements

• 30% of newly appointed managers were women (exceeding the 25% target).
• Launched two new training programs in 2021: “women in leadership” and unconscious bias training.
• Zero fatalities for the sixth consecutive year.

Governance Achievements

• Established a Corporate Sustainability Council (CSC) at the Executive Committee level.
• Implemented the GF Transparency Line, a new whistleblower channel.
• Executive compensation linked to ESG targets.

Climate Goals & Targets

Environmental Challenges

• Slight increase in water intensity due to a major leakage at a GF Casting Solutions site.
• Increase in accident rate to 10.2% in 2021, mainly due to reduced working hours and temporary site closures in 2020.
• Scope 3 emissions represent the majority (86%) of GF’s total GHG emissions.

Mitigation Strategies

• Fixed the water leakage at the GF Casting Solutions site.
• Re-launched the cross-divisional Zero Risk campaign under the new motto “Be Aware – Be Safe”.
• Developed a detailed roadmap to achieve science-based targets for scope 1, 2, and 3 emissions.

Supply Chain Management

Supplier Audits: 34% of procurement spend assessed in 2021

Responsible Procurement

• Sustainability assessments using EcoVadis or similar rating agencies.
• Code of Conduct for Business Partners.
• Supplier self-assessment questionnaire.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and solutions.

Reporting Standards

Frameworks Used: GRI Standards: Core option (2016), Greenhouse Gas Protocol Corporate Standard, TCFD

Certifications: ISO 14001, ISO 50001 (8 facilities), ISO 45001 (85% of production facilities)

Third-party Assurance: PricewaterhouseCoopers AG (PwC)

UN Sustainable Development Goals

• Goal 6 (Clean Water and Sanitation)
• Goal 7 (Affordable and Clean Energy)
• Goal 4 (Quality Education)
• Goal 5 (Gender Equality)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 11 (Sustainable Cities and Communities)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 17 (Partnerships for the Goals)

GF's contributions to the SDGs are detailed in the report.

Sustainable Products & Innovation

• Butterfly Valve 565
• Pneumatic plastic actuators
• Pressure piping system made from bio-based PVC
• Lightweight aluminum castings for electric vehicles
• New spool for electric discharge machines (EDMs)
• Software algorithm to reduce resource consumption in wire EDM

Awards & Recognition

• CDP A– rating for climate change and water security
• S&P Global CSA overall score of 60% (88th percentile)
• EcoVadis silver medal for GF Piping Systems and GF Casting Solutions
• RedDot Design Award for new pneumatic plastic actuators

Environmental Metrics

ESG Focus Areas

• Climate change
• Water conservation
• Safety
• Sustainable mobility
• Circular economy
• Diversity & Inclusion
• Responsible supply chain
• Human rights

Environmental Achievements

• Reduced scope 1 and 2 emissions by 14% compared to 2021, and by 29% against the 2019 baseline.
• Increased renewable energy share to 31% of total energy consumption (from 24% in 2021).
• Reduced unrecycled waste intensity by 42% compared to the 2018-2020 average.
• Recycled 78% of waste.

Social Achievements

• 29% of newly appointed managers were women (exceeding the 25% target).
• GF Casting Solutions employee survey showed 79% considering the division an “employer of choice”.
• GF Machining Solutions employee survey showed 74.1% employee satisfaction rate.

Governance Achievements

• Science Based Targets initiative (SBTi) validated GF's science-based targets to reduce GHG emissions.
• Received an A- rating from CDP for climate change and water security for the third consecutive year.
• Executive compensation linked to ESG goals, particularly the CO2e emission target.

Climate Goals & Targets

Environmental Challenges

• Geopolitical and macroeconomic uncertainties.
• Supply chain disruptions.
• Increased scope 3 emissions due to ramp-up of magnesium components and changes in GF Casting Solutions' iron foundry.
• Fluctuating demand for products.

Mitigation Strategies

• Strong position in resilient market segments and balanced global presence.
• Investing in energy efficiency measures and self-generating renewable energy.
• Developing alternative sourcing strategies and collaborating with suppliers on sustainable materials.
• Implementing water-saving measures and leak detection systems.

Supply Chain Management

Supplier Audits: 64% of procurement spend assessed in 2022.

Responsible Procurement

• Code of Conduct for Business Partners
• Sustainability assessments (EcoVadis)
• Webinars and training materials for suppliers
• Self-assessment questionnaire for smaller suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Growth in sustainable market segments

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards, GHG Protocol

Certifications: ISO 14001, ISO 45001, ISO 50001 (9 facilities)

Third-party Assurance: PwC

UN Sustainable Development Goals

• SDG 3
• SDG 6
• SDG 7
• SDG 9
• SDG 12
• SDG 13

Initiatives contribute to these goals through sustainable products, water conservation, renewable energy, resilient infrastructure, sustainable consumption and production, and climate action.

Sustainable Products & Innovation

• HEAT-FIT pipe jacket system
• Ball Valve 543 Pro
• IR PVC-U system
• COOL-FIT 2.0 Push System
• Lightweight die-cast magnesium cross car beam
• Big Castings
• Laser texturing machines
• Energy-efficient machines (Econowatt)

Awards & Recognition

• European Die Casting Award
• Intel’s EPIC Distinguished Supplier Award
• TSMC 2022 Excellent Performance Award
• Swiss Real Estate Award
• Pinnacle of Safety Award

Environmental Metrics

ESG Focus Areas

• Climate change
• Energy transition
• Protection of human rights
• Clean drinking water
• Circular economy
• Diversity and inclusion
• Safety

Environmental Achievements

• Reduced Scope 1 and 2 emissions by 35% compared with the 2019 baseline.
• Increased renewable energy to 33% of total energy consumption (up from 29% in 2022).
• Reduced the intensity of waste sent to landfill or incineration by 30% compared with the 2018–2020 average.
• Recycled 78% of its waste.

Social Achievements

• 31% of newly appointed managers were women (exceeding the 25% target).
• Overall, the vast majority of employees recommend GF as an employer of choice (Median 80%).
• Accident rate dropped to 7.4 LTIFR in 2023 (a 12% reduction compared with 2022).
• Launched a new GF Human Rights Due Diligence (HRDD) process.

Governance Achievements

• Secured a position in the top 5 of Europe’s Climate Leaders.
• Secured the highest possible “A” score from CDP for transparency and performance on climate change.
• All GF divisions received noteworthy accolades from EcoVadis.

Climate Goals & Targets

Environmental Challenges

• Scope 3 emissions from purchased goods, services and use of sold products.
• Net-zero solutions still in the pilot stage in many cases.
• Low-carbon material is still under development and not fully available in all countries.
• Increased water intensity due to negative development of production volume at a key plant.

Mitigation Strategies

• Developing roadmaps to achieve SBTi-aligned targets.
• Expanding the use of renewable energy and enhancing energy efficiency.
• Identifying material substitutions and engaging with key suppliers.
• Improving energy consumption of customer machines.
• Implementing water-saving measures, including water meters and water-saving fixtures.

Supply Chain Management

Supplier Audits: 73% of procurement spend assessed in 2023.

Responsible Procurement

• Code for Business Partners
• EcoVadis ratings
• Supplier sustainability assessments
• ESG requirements embedded in supplier agreements
• Collaboration with suppliers on PCFs
• Early supplier involvement in innovation projects

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards, IFRS climate disclosures, SASB, Swiss Code of Obligations (OR 964), GHG Protocol, EU Taxonomy

Certifications: ISO 14001, ISO 45001, ISO 50001, IATF (GF Casting Solutions), NADCAP (GF Casting Solutions)

Third-party Assurance: PricewaterhouseCoopers AG

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 5
• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 11
• SDG 12
• SDG 13
• SDG 17

GF's products and solutions contribute to these goals through sustainable water and gas transport, greener mobility, energy-efficient manufacturing, responsible employment practices, and stakeholder engagement.

Sustainable Products & Innovation

• Modular metal inserts for Butterfly Valve 565
• Paper-based packaging for industrial valves
• Bio-attributed PVC portfolio
• Lightweight structural components for electric/hybrid vehicles
• Energy-efficient machines with Econowatt

Awards & Recognition

• Europe’s Climate Leaders (top 5)
• CDP A rating for climate change
• EcoVadis Gold medals (GF Piping Systems, GF Casting Solutions)
• EcoVadis Silver medal (GF Machining Solutions)
• LEED certifications (GF Piping Systems)
• LEED Silver certification (GF Casting Solutions Shenyang)
• Friendly Work Space quality label (GF Swiss locations)