Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced pollution by recycling, reusing and extending the life of products and materials
• Fuel cell systems produce no noxious gases and pure hydrogen fuel cells produce no harmful emissions such as carbon dioxide.

Social Achievements

• Commitment to ethical conduct and contribution to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.
• No major or minor accidents or dangerous occurrences during the year.
• No reportable environmental or loss of containment incidents.

Governance Achievements

• Adherence to the Quoted Companies Alliance’s (QCA) Corporate Governance Code for small and midsize quoted companies.
• Established an Audit Committee, a Nominations Committee and a Remuneration Committee with formally delegated duties and responsibilities.

Climate Goals & Targets

Environmental Challenges

• Operating revenues and future funding; there can be no certainty that the Group will achieve or sustain significant revenues, profitability or positive cash flow from its operating activities.
• Continuing development of the Group’s technology may be required and there can be no assurance that any of the Group’s future technology will be commercially successful.
• Competition for the Group’s products will come from current power technologies, from improvements to current power technologies and from new alternative power technologies, including batteries, other types of fuel cells or other self-contained energy systems.
• Governmental regulation changes.
• Dependence on key personnel.
• Currency exchange rate fluctuations.
• COVID-19 pandemic impacts (supply chain disruption, liquidity shortages, compliance with health and safety and other regulations).

Mitigation Strategies

• Constantly monitoring operational cash flows and preparing projections to identify cash flow shortages.
• Loans to cover operating cash flow shortages have been provided by the Group’s principal shareholder and Falih Nahab and it is expected that these loan agreements will be extended or renewed as required for the foreseeable future.
• Focus on transferring from a purely project based company into a manufacturing company; production planning process is currently in place with the focus on reducing manufacturing time and costs.
• Actively securing the Group’s short to medium term cash flows by minimising the exposure to financial markets.
• Implemented all protective measures as required, and is in full compliance with all current issued regulatory statements.
• Regularly assess the likely effects on the performance of Group in an attempt to mitigate the risk as far as possible.

Supply Chain Management

Responsible Procurement

• Actively seeks to build up long term and fair relationships with its suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: QCA Corporate Governance Code

Sustainable Products & Innovation

• Fuel cells and fuel cell hybrid systems

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainable Energy
• Innovation

Environmental Achievements

• Developed fuel cell technology for emission-free drone ship
• Won the Hessian State Prize for Energy 2022 for HyRange® system

Social Achievements

• Partnered with WILO SE on H2Powerplant project
• Participated in Bavarian delegation to Oman to discuss hydrogen economy

Governance Achievements

• New appointments in management: Director of Governmental Affairs & Communication and Head of Sales and Marketing

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Hydrogen fuel cells

Awards & Recognition

• Hessian State Prize for Energy 2022

Environmental Metrics

ESG Focus Areas

• zero-carbon footprint
• renewable energy
• hydrogen technology

Environmental Achievements

• Increased system sales by 83% to 42 (2022: 23 system sales), contributing to a reduction in reliance on fossil fuels.

Social Achievements

• Restructuring programme to match the business plan for the new year, based on a headcount reduction.
• Participation in EU REVIVE and StasHH projects, collaborating with other companies to advance fuel cell technology.

Governance Achievements

• Appointment of Ali Naini as Chairman in May 2024.
• Continued participation in the European Clean Hydrogen Alliance (ECH2A).

Climate Goals & Targets

Environmental Challenges

• Operating loss in 2023 of £10,368k (2022: £10,542k), primarily due to investments in development, staff, and infrastructure.
• Order intake during the first five months of 2024 lower than expected.
• Utilization of loan facility exceeding its limit by approximately €6 million due to accelerated payments for the new production facility and delayed payments from a customer.

Mitigation Strategies

• Introduction of the new HyModule S4 fuel cell system.
• Securing a new shareholder loan facility of up to €12 million.
• Cost structure monitoring and alignment with growth in the short to medium term.
• Focus on developing near-term sales from existing customers and developing new customer relationships.

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Growing market demand for clean power supply

UN Sustainable Development Goals

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

Proton Motor's fuel cell technology contributes to these goals by providing clean energy solutions, promoting sustainable industrial practices, and mitigating climate change.

Sustainable Products & Innovation

• HyModule S4 fuel cell system
• HyScale® systems