HDT Automotive
Climate Impact & Sustainability Data (2023)
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:33,524 tCO2e (2023)
Scope 1 Emissions:7,760 tCO2e (2023)
Scope 2 Emissions:25,004 tCO2e (2023)
Total Energy Consumption:51,183,526 kWh (2023)
Water Consumption:79,848,431 gallons (2023)
Carbon Intensity:72.5 tonne CO2 per million sales (2023)
ESG Focus Areas
- Environment
- Workforce
- Governance
- Procurement
- Social
Environmental Achievements
- Reduced global environmental footprint by 8.4% (tonne CO2 per million sales) from 2021 to 2022.
- Replaced seven combustion-powered trucks with electric alternatives in HDT-US (Lexington), resulting in an annual emissions reduction of 252 tons of CO2.
- Reduced electrical consumption by 20-60% across six facilities by replacing plant lighting with LED lighting, resulting in approximately 1000 tons of CO2 removed.
- Implemented water-saving initiatives at HDT-China, aiming to reduce water consumption by 200,000 gallons.
- Achieved a 22% reduction in natural gas consumption at HDT-Hungary, removing approximately 100 tons of CO2.
- Reused 99% of process water at HDT-Mexico for irrigation, equating to a reuse of 125,000 gallons of water per year.
Social Achievements
- Launched a new Talent Management Program in 2023.
- Implemented the Buddy Program in HDT-Hungary and HDT-Mexico to improve new employee onboarding.
- Expanded online compliance training platform to the global salaried workforce, resulting in 7,670 completed courses.
- Celebrated Children's Day in Mexico and Family Fun Month in China.
- Donated school supplies to 68 team members' children in Mexico.
- Conducted 58 mammary explorations at HDT-Mexico during Breast Cancer Awareness Month.
Governance Achievements
- Implemented an enhanced grievance reporting mechanism.
- Developed and implemented a robust Code of Conduct.
- Conducted annual risk assessments to audit and prevent child or forced labor, resulting in a 0% incident rate.
- Achieved a phish-prone average of 5.1%, surpassing the industry average of 5.9%.
Climate Goals & Targets
Medium-term Goals:
- Scope 1 and Scope 2 carbon neutrality by 2035
Short-term Goals:
- Reduce High-Danger Task Global severity rate by 10% (2024)
- Maintain a low incident rate of 0.5 (2024)
- Establish a corporate standardized method for Robotic Cell Risk Assessment (2024)
- Implement behavioral-based safety initiatives (2024)
- Evaluate and reinforce compliance with pre-existing global requirements (2024)
Environmental Challenges
- Supply chain disruptions due to global events (implied)
- Maintaining robust defenses against cyber threats
- Ensuring compliance with the Carbon Border Adjustment Mechanism (CBAM)
Mitigation Strategies
- Quarterly web-based awareness trainings and simulated phishing emails for cybersecurity.
- Non-Disclosure Agreements (NDAs) with external vendors.
- Working with impacted suppliers to obtain actual emissions for products imported into the EU to comply with CBAM.
Supply Chain Management
Supplier Audits: 79% of targeted suppliers signed off on Business Partner Code of Conduct (2023)
Responsible Procurement
- Sustainable Procurement Policy
- Responsible Sourcing of Raw Materials (RSRM) Policy
- Environmental and Regulatory Compliance
- Business Partner Code of Conduct
- Commitment to Respecting Supply Chain Labor Standards
- Supplier Risk Analysis
- Supplier Quality List
- HDT Automotive Supplier Portal
Climate-Related Risks & Opportunities
Opportunities
- Diversification to Electric Vehicle technologies
Reporting Standards
Frameworks Used: GRI, SASB
Certifications: ISO 14001
Sustainable Products & Innovation
- Hybrid and fully electric vehicle components; battery cooling assemblies; hydrogen lines; smaller displacement engines with turbo lines; Exhaust Gas Recirculation (EGR) lines