Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Employee Development
• Social Commitment
• Compliance & Corporate Governance
• Product Safety
• Customer Satisfaction
• Sustainable Supplier Management

Environmental Achievements

• Reduced total energy consumption per axle at German production locations by 13.9% (exceeding the target of 3.9%) from 2015 to 2017.
• Reduced CO2 emissions per manufactured axle system in 2017 by 16.1% compared to 2015.
• Reduced energy consumption per axle manufactured at German locations by 4.4% compared to the previous year.
• Replaced two diesel vehicles with three emission-free electric vehicles at Bessenbach.
• Implemented 19 strategic measures to increase energy efficiency at German sites, targeting around 600 MWh in savings.

Social Achievements

• Launched an international trainee program.
• Supported various social projects, including support for refugees, tree planting initiatives with Plant-for-the-Planet, book donations, and food bank contributions.
• Implemented a new variable remuneration model to better reward employee performance.
• Expanded meal times to include late and night shifts in response to employee feedback.
• Successfully implemented 47 of 276 suggestions for improvement submitted through the "My Idea" initiative.

Governance Achievements

• Established an international and multi-disciplinary Corporate Social Responsibility Council (CSR Council).
• Established a CSR Reporting Working Group.
• Conducted a materiality analysis to identify relevant sustainability issues.
• Voluntarily complies with the recommendations of the German Corporate Governance Code.
• Implemented preparations for an electronic whistleblowing system.

Climate Goals & Targets

Environmental Challenges

• Shortage of skilled workers in the automotive industry.
• Demographic change.
• Digitization.
• Internationalization of the SAF-HOLLAND Group.
• Stricter air quality regulations in Wylie, US.
• Leakage in the osmosis facility at Muskegon, US, resulting in higher water consumption.

Mitigation Strategies

• Focus on building a solid workforce and acquiring qualified specialists.
• Employer branding initiatives to increase appeal.
• Removal of wash line, paint line, and curving oven in Wylie to meet stricter air regulations.
• Decommissioning of two furnaces at Holland, US.
• Measures to reduce water consumption (storage tanks for washing solutions).

Supply Chain Management

Supplier Audits: 1,005 suppliers in EMEA/I region, 1,923 in Americas region in 2017. On-site audits conducted, including new environmental and social standards.

Responsible Procurement

• Supplier guidelines (regionally adapted)
• Multi-step supplier acceptance process
• Supplier Code of Conduct under development

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products (e.g., lightweight construction).

Reporting Standards

Frameworks Used: GRI (Global Reporting Initiative) Standards: Option Core

Certifications: ISO 9001 (10 locations), ISO TS/IATF 16949 (7 locations), ISO 14001 (9 locations), ISO 50001 (Bessenbach and Singen locations)

Sustainable Products & Innovation

• SAF Tire Pilot
• SAF Adaptive Air Damping System
• Single-point automatic lubrication pump (RECOLUBE)
• HOLLAND ELI-te™ Retro Fit Kit

Awards & Recognition

• 2018 European Transport Award for Sustainability (Think Ahead program)
• HDT Top 20 Products award (ELI-te™ system)
• Gold award at 2017 Solutrans Innovation Awards (SAF Adaptive Air Damping System)
• Focus Money award "Germany’s Best Training Companies"

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Products
• Environment
• Employees
• Social Engagement

Environmental Achievements

• Reduced relative energy consumption by 33% since 2012 at German sites.
• Replaced refrigeration appliances containing CFCs with energy-efficient alternatives at German sites.
• Offset emissions of 1,040 t CO2 in 2018 through the "Plant for the Planet" initiative.
• 91% of waste recycled in 2018.
• 48% of worldwide production sites are ISO 14001 certified.

Social Achievements

• Launched a whistleblower system.
• Revised Code of Conduct.
• Joined the UN Global Compact.
• Supported 16 social projects in EMEA and Americas regions.
• Implemented an idea management campaign ("My Idea") to encourage employee suggestions.

Governance Achievements

• Optimized compliance management with new automated processes.
• Established a Compliance Committee.
• Revised Code of Conduct to address compliance risks.

Climate Goals & Targets

Environmental Challenges

• Shortage of skilled workers.
• Demographic change.
• Digitization.
• Low proportion of women in the workforce.
• Potential compliance risks from suppliers.

Mitigation Strategies

• Employer branding strategy to attract and retain employees.
• International trainee program.
• Development of a Supplier Code of Conduct.
• Supplier audits (17% of suppliers in EMEA region audited in 2018).
• Initiatives to attract more women to the company.

Supply Chain Management

Supplier Audits: 17% of production material suppliers in EMEA region audited in 2018.

Responsible Procurement

• Multi-supplier strategy.
• Emergency management system.
• Development of a Supplier Code of Conduct.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Stricter air quality regulations, taxes, and emissions trading.

Opportunities

• Development of energy-efficient products.

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 9001: 2015 (72% of production sites), ISO 14001 (48% of production sites), ISO 50001 (Bessenbach, Aschaffenburg, Singen sites), OHSAS 18001 (Xiamen and Pune sites)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Lightweight design concepts to reduce fuel consumption.
• Digitization of products to improve efficiency.

Awards & Recognition

• Think Ahead program awarded jury's honorary prize for holistic environmental protection concept.
• Think Ahead program recognized in the "Green Ranking" of VerkehrsRundschau.

Environmental Metrics

ESG Focus Areas

• Environmental efficiency of operational processes
• Supply chain sustainability
• Occupational health and safety
• Human rights
• Business ethics
• Economic performance
• Product safety

Environmental Achievements

• Reduced energy consumption by implementing measures such as LED outdoor lighting and efficient air compressors.
• Achieved 90% recycling rate across the Group.
• Offset 2% of total greenhouse gas emissions (Scope 1 and 2) through tree planting.
• Implemented water-saving processes at the new Yangzhou factory, reducing water consumption.

Social Achievements

• Implemented a digital training app (APPRENTIO®) to improve training efficiency and reduce paper usage.
• Supported local communities through various initiatives, including school supplies donations in India and water quality restoration in Michigan.
• Improved employee satisfaction from 61% to 64% based on a global employee survey.
• Developed and published a Human Rights Policy and a Statement on Modern Slavery.

Governance Achievements

• Updated Code of Conduct available in eleven languages.
• Implemented additional measures to fulfill duty of care in terms of human rights in accordance with the “National Action Plan for Business and Human Rights”.
• Established an electronic whistleblower system.
• Revised the guideline on dealing with gifts and invitations and the corresponding training modules.

Climate Goals & Targets

Environmental Challenges

• Shortage of skilled workers
• Demographic change
• Digitization
• Climate change related risks (physical and transitional)
• Supply chain disruptions due to extreme weather events

Mitigation Strategies

• Investing in research and development (2% of revenue)
• Implementing a multi-sourcing strategy to mitigate supply chain disruptions.
• Developing a climate strategy to identify, analyze, and assess climate-related risks.
• Centralizing purchasing function to improve transparency and harmonize processes.
• Adding CSR-related questions to the supplier qualification checklist.

Supply Chain Management

Supplier Audits: 56/year

Responsible Procurement

• CSR criteria incorporated into supplier qualification process; communication of revised Code of Conduct to all suppliers; extended sustainability checklist for supplier disclosures.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (flood, storm, hail, heat damage, forest fires), business interruption, supply delays, damage to facilities

Transition Risks

• Changes in legislative environment, stricter environmental thresholds, higher CO2 emission prices

Opportunities

• Lightweight construction, fuel efficiency, digitization, electrification

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 9001, IATF 16949 (quality management), ISO 14001 (environment), OHSAS 18001 (occupational health and safety), ISO 50001 (energy)

Third-party Assurance: Not disclosed

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 related to energy efficiency, sustainable product development, waste reduction, and climate change mitigation.

Sustainable Products & Innovation

• SAF INTRADISC plus INTEGRAL (lighter version), FWAL-E fifth wheel (lighter version), SAF TIRE PILOT, SAF TRAKr and SAF TRAKe electric trailer axles, TrailerMaster system

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Changed legal form from SAF-HOLLAND S.A. to SAF-HOLLAND SE and relocated headquarters to Germany.
• Developed the structure of its committees and placed their leadership in new hands.
• Appointed Inka Koljonen as CFO, resulting in a more diverse Management Board.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting sales and operations.
• Supply chain disruptions.
• Market conditions impacting sales, particularly in the OE business.

Mitigation Strategies

• Established comprehensive rules of conduct and hygiene standards.
• Flexibly adapted production to meet customer demand.
• Implemented cost-cutting programs (FORWARD 2.0 in Americas, Cash-is-King globally).
• Successfully placed a promissory note loan.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products.

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Lightweight components reducing CO2 emissions.
• SAF TRAKr and SAF TRAKe electrified axles.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate protection
• Social issues

Environmental Achievements

• Series production of recuperation axle, SAF TRAKr, commenced, converting kinetic energy into electrical energy, saving fuel and reducing emissions.
• Installation of beehives and an insect hotel at the Bessenbach site to counteract biodiversity loss.
• Yangzhou (China) plant designed for 15% annual energy reduction compared to previous Chinese technologies; new air compressors with heat recovery achieving 35% energy savings; infrared drying systems reducing gas consumption by 25%.

Social Achievements

• Launched “Diversity and Equal Opportunity” global campaign and established a global Diversity Council.
• Offered a special apprenticeship for machine and plant operators and a dual-track degree in international technical project management.
• Introduced an employee app for improved internal communication.

Governance Achievements

• Appointed Compliance Ambassadors for EMEA, Americas, and APAC regions.
• Extensively revised “Guideline on Gifts and Invitations” put into force.
• Published a Culture Code in 2020, binding for all employees.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations and goals.
• Supply chain disruptions, particularly semiconductor shortages delaying new sensor and telematics package.
• Tight supply situation for vital upstream products.

Mitigation Strategies

• Implemented extensive COVID-19 safety measures, including test centers, self-tests, masks, and on-site vaccinations.
• Enabled mobile working for employees.
• Planning to revise supplier strategy in 2022, giving greater weight to regional sources.

Supply Chain Management

Supplier Audits: 20 strategic suppliers audited in 2021.

Responsible Procurement

• Supplier qualification process including self-assessment and standardized questionnaire.
• Code of conduct binding on suppliers with annual turnover exceeding EUR 50,000.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (floods, storms, hailstorms, heat waves, forest fires) impacting suppliers and operations.

Transition Risks

• Changes in legal framework and CO2 pricing.

Opportunities

• Growing market opportunities from sustainability criteria for product evaluation; fuel-saving weight reductions, digitalization, and electrification.

Reporting Standards

Frameworks Used: GRI Standards: Core option, UNGC

Certifications: ISO 9001, IATF 16949, ISO 14001, ISO 50001, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• SAF TRAKr and SAF TRAKe electrified axles (fuel savings up to 25%); SAF SMART AXLE with sensors for monitoring vehicle condition; SAF TIRE PILOT system for continuous tire pressure monitoring.

Awards & Recognition

• Top Karrierechancen für Frauen 2021 award

Environmental Metrics

ESG Focus Areas

• Net zero emissions no later than 2050
• Sustainable products and innovation for our customers
• Sustainable operational excellence in the value chain
• Attractive employer
• Effective governance

Environmental Achievements

• Reduced energy consumption per million EUR of revenue by 5.4%
• Reduced CO2e emissions per million EUR of revenue by 19.4%
• Reduced water use per million EUR of revenue by 20.6%
• Reduced waste per million EUR of revenue by 5.6%
• Completed and/or started major investments in renewable energies/solar systems across production sites in Germany, China, India, and Mexico

Social Achievements

• Rolled-out global ESG online training to 1,985 employees (nearly 85% participation)
• Improvements to diversity, work-life balance, talent management, and corporate health management programs
• Reduced occupational accidents globally by 39 (104 in 2023 vs 143 in 2022)

Governance Achievements

• Published Code of Conduct for suppliers and Anti-Corruption Policy
• Commenced CSRD/ESRS and EU Taxonomy “dry run” reviews with external auditor
• Enhanced the existing whistleblowing system

Climate Goals & Targets

Environmental Challenges

• High energy costs for consumers and companies
• Rising cost of living with unchanged salary
• Increased demand for renewable energy solutions results in elevated acquisition costs for consumers and businesses
• Potential scarcity and increased cost of fossil and renewable energy in the future
• Workplace accidents
• Physical and mental health issues arising from the workplace
• Inadequate training leading to employee dissatisfaction and higher turnover
• Job displacement due to automation of processes
• Growing gap between employee skills and skills demanded by a complex work environment

Mitigation Strategies

• Short-term measures to save energy
• Investments in renewable power generation
• Rigorous training programs and safeguards to mitigate workplace accidents
• Multifaceted approach addressing physical and mental health issues (monitoring, training, ergonomic solutions, technical aids, psychological assistance)
• Diverse and impactful training opportunities
• Support mechanisms (training initiatives, clear communication) to alleviate uncertainty during digital transition
• Global roll-out of energy management system
• Updates to travel & car policies

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Increasing efforts of legislators to introduce CO2 pricing

Opportunities

• Growing market opportunities in connection with sustainability criteria for product evaluation
• Positioning as a systems partner of a newly emerging green transport industry

Reporting Standards

Frameworks Used: GRI Standards 2021, CSRD, EU Taxonomy

Certifications: ISO 9001, IATF 16949, ISO 14001 (73% of facilities), ISO 45001 (Bessenbach plants and Nashik site), ISO 50001 (Bessenbach sites)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• 3
• 4
• 7
• 8
• 9
• 12
• 13

Initiatives contribute to these goals through various programs and activities

Sustainable Products & Innovation

• SAF TRAKr and SAF TRAKe electric axles
• Air Disc Brake
• Electric Brake System (EBS)
• Electromechanical Brake (EMB)
• TIRE PILOT I.Q. system

Awards & Recognition

• Not disclosed