Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability

Environmental Achievements

• Reduced water consumption by 60% in a Californian irrigation project (NDS subsidiary)

Social Achievements

• Introduced Supplier Code of Conduct in 2015, based on ILO, UDHR, UN Global Compact, and SA 8000; Awarded Gold Status in EcoVadis sustainability rating in 2016; Reduced incident rate to 6 per 1,000 employees (from 8 in 2016); Implemented 'Value-Based Safety' program.
• Implemented Group-wide Environmental Management System; Most production sites certified according to ISO 14001.

Governance Achievements

• Published Corporate Responsibility Report since 2013 (annually from 2017); Compliance with the German Corporate Governance Code; Implemented Good Practice Controls at all sites in 2015; Global anti-corruption training for employees.

Climate Goals & Targets

Environmental Challenges

• Volatile international commodity markets and increased raw material prices (metals and engineering plastics); Heavy rains in California and devastating hurricanes in the US negatively impacted the water business; Class action lawsuit in the US regarding employee working time measurement; Lawsuit in Malaysia relating to a new plant.
• Changes in customs regulations and foreign trade law, terrorism and piracy threats.

Mitigation Strategies

• Centralized purchasing with local expertise to minimize market-related price fluctuations; Long-term contracts to control price fluctuations; Alternative materials tested to reduce dependence on individual materials; Active working capital management (reverse factoring, ABS program); Participation in various customs and trade partnership programs (AEO, C-TPAT); Global Operational Excellence Management System for continuous process optimization; Supplier Code of Conduct to ensure compliance with human rights and appropriate work and social benefits.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct; Supplier evaluation system considering sustainability criteria; Consolidating supplier base; Top 10 suppliers account for ~32% of purchasing volume.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001, OHSAS 18001 (20 out of 27 production sites), ISO 9001 or TS 16949 (all manufacturing locations), EN 9100 (two aerospace sites)

Third-party Assurance: PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft

Sustainable Products & Innovation

• Water-saving irrigation system (NDS)

Awards & Recognition

• Investors’ Darling (1st place in MDAX segment, 6th overall); The Best Annual Report 2016 (3rd place in MDAX segment, 5th overall)

Environmental Metrics

ESG Focus Areas

• Responsible Management
• Business Solutions
• Employees
• Environment
• Community

Environmental Achievements

• Reduced CO2 emissions from electricity and gas consumption (market-based) by 0.4% compared to 2017.
• Reduced water consumption per EUR thousand of revenue by 5.9% compared to 2017.
• 93% of manufacturing sites certified according to ISO 14001.

Social Achievements

• Launched internal CR Award to recognize sustainable commitment.
• Held NORMA Help Day with over 700 employees participating in 34 sites.
• Continued NORMA Clean Water project in Brazil, providing training to 450 residents.

Governance Achievements

• Achieved Prime Standard in Oekom-ISS rating.
• Received Building Public Trust Award from PwC for best non-financial reporting.
• Implemented a new Commodity Strategy Template including Sustainability Fact Sheets.

Climate Goals & Targets

Environmental Challenges

• Rising commodity prices.
• Increased accident rate (7.8 accidents/1000 employees) compared to 2017.
• Water pollution control regulation violation by Fengfan subsidiary resulting in a fine.

Mitigation Strategies

• Renegotiating contracts to pass on a share of commodity price increases to customers.
• Implementing the “Value-based safety” initiative to encourage early identification of safety risks.
• Installing new equipment to filter wastewater and replacing cleaning agents at Fengfan subsidiary.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• Sustainability Fact Sheets in Commodity Strategies
• Supplier scoring including sustainability criteria

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and e-mobility solutions.

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 9001, IATF 16949, EN 9100, ISO 14001, OHSAS 18001

Third-party Assurance: PricewaterhouseCoopers (PwC) - Limited assurance

UN Sustainable Development Goals

• Goal 4 (Quality Education)
• Goal 6 (Clean Water and Sanitation)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

NORMA Group's sustainability objectives align with UN SDGs in various areas, including training and development, water management, fair pay, innovation, resource efficiency, and climate action.

Sustainable Products & Innovation

• Thermal management systems for electric vehicles
• Water management products (drip irrigation systems, FGR coupling)

Awards & Recognition

• Building Public Trust Award (PwC)
• NORMA Clean Water project finalist for German CSR Prize

Environmental Metrics

ESG Focus Areas

• Responsible Management
• Business Solutions
• Employees
• Environment
• Community

Environmental Achievements

• Scope 1 and 2 emissions remained almost unchanged at 51,374 tons compared to the previous year (2018: 51,018 tons).
• 90% of production sites were certified according to ISO 14001.

Social Achievements

• Average training hours per employee increased to 28.1 hours (2018: 23.9 hours).
• Accident rate decreased to 4.3 accidents per 1,000 employees (2018: 7.8).

Governance Achievements

• 96.6% of employees completed online compliance training on schedule.
• No cases of discrimination or violations of freedom of association were determined by courts.

Climate Goals & Targets

Environmental Challenges

• Potential increase in production costs due to greenhouse gas pricing.
• Potential business downturns in the automotive sector with conventional powertrains.
• Water scarcity in some regions where NORMA Group operates.

Mitigation Strategies

• Developing new products for e-mobility and water management.
• Implementing a structured environmental management system with targets for reducing greenhouse gas emissions.
• Reducing water consumption in production processes.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• Sustainability Fact Sheets in commodity strategies
• Supplier scoring including sustainability criteria
• Sustainability self-assessment for suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, water shortages

Transition Risks

• Increased greenhouse gas pricing, decline in market for conventional powertrains

Opportunities

• Growth in e-mobility and water management markets, energy savings

Reporting Standards

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

Certifications: ISO 14001, OHSAS 18001/ISO 45001, ISO 9001, IATF 16949, EN 9100

Third-party Assurance: PricewaterhouseCoopers (PwC) - Limited assurance

UN Sustainable Development Goals

• Goal 4 (Quality Education)
• Goal 6 (Clean Water and Sanitation)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

NORMA Group's initiatives contribute to these goals through training and development, water management products, growth targets, innovations, resource efficiency, and greenhouse gas reduction.

Sustainable Products & Innovation

• EM Compact Quick Connector (improved thermal management of batteries)
• Products for water management (drip irrigation, stormwater management)

Awards & Recognition

• NORMA Clean Water project finalist for German CSR Award

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions (Scope 1 and 2) by 12.8% to 43,449 tCO2e compared to the previous year.
• Improved normalized energy consumption by 4.0%.

Social Achievements

• Increased average training hours per employee to 29.6 hours (41.6% increase from 2020).
• Launched NORMA Clean Water project in Brazil, providing clean water access to 600 families.

Governance Achievements

• Implemented online compliance training for 1,114 employees.
• Revised the Supplier Code of Conduct and Code of Conduct.

Climate Goals & Targets

Environmental Challenges

• Global supply chain disruptions leading to material shortages and price increases.
• Volatile ordering behavior from customers in the automotive industry.
• Coronavirus pandemic and related restrictions.

Mitigation Strategies

• Implemented countermeasures to contain negative effects on business.
• Consolidated sites in Asia-Pacific and relocated product groups.
• Expanded digital commerce activities.

Supply Chain Management

Supplier Audits: Annual supplier scoring; 41% of suppliers participated in sustainability self-assessment.

Responsible Procurement

• Supplier Code of Conduct
• Sustainability Fact Sheets in commodity strategies
• Conflict Minerals Roadmap

Climate-Related Risks & Opportunities

Transition Risks

• Market decline for conventional drives due to increased production of alternative drive systems.

Opportunities

• Growth in e-mobility and water management markets.
• Energy savings reducing operating costs.

Reporting Standards

Frameworks Used: GRI, UN Global Compact

Certifications: ISO 14001, ISO 45001

Third-party Assurance: PricewaterhouseCoopers (PwC)

UN Sustainable Development Goals

• Goal 4
• Goal 6
• Goal 8
• Goal 9
• Goal 12
• Goal 13
• Goal 17

Initiatives contribute to these goals through various programs and product offerings.

Sustainable Products & Innovation

• Quick connectors
• Thermal management systems for electric vehicles
• Drip irrigation systems
• Stormwater management solutions

Awards & Recognition

• Investors’ Darling competition (1st in SDAX, 2nd overall)
• FOX Finance Awards (GOLD)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Consumption
• Efficient Production & Waste Management
• Employee Satisfaction
• Occupational Safety & Health
• Diversity & Equal Opportunities
• Corporate Governance
• Compliance Management System
• Human Rights
• Product Quality & Safety
• Sustainability in Purchasing

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• Sustainability fact sheets
• CMRT reporting & sanction list screening

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed