ESG Performance - Wuerth (China) Holding Co., Ltd.-ESG Alliance

Company Name: Wuerth (China) Holding Co., Ltd.

Award Category: ESG Performance

Company Size: Large Business Group

Environment

Climate Change:

Earth Hour Video

On the “Earth Hour” in 2022, we encouraged colleagues all over China to participate in the action of “turning off the lights for an hour” and record what they did during this time that are environmentally beneficial. In the next week, we received pictures and video clips from colleagues from Shanghai, Shenyang, Changzhou, and Shenzhen. We put them together and made a video compilation, in order to advocate for further environment protection and carbon reduction. The video was published in various internal and external communication channels.

Natural Resources and Energy:

1. Solar panel and renewable energy

In Arnold Fasteners (Shenyang) Co. LTD, a rooftop photovoltaic system went into operation in July 2022, covering 8,000 m² with an installed capacity of 942 kWp. Another 249 kWp system was installed on the roof of Würth Elektronik Shenyang with approx. 2,000 m² of solar panels. Furthermore, a car park was covered with a 524 kWp PV roof measuring approx. 4,000 m². The PV systems have a maximum output of 1,715 kWp and generated 1.9 million kWh of electricity until July 2023, cutting up to 1,200 tons of CO₂ emissions a year in average.

2. Air Cleaning System

The air-cleaning systems not only clean the air during production, but they also reuse the cleaned air in several departments to reduce energy consumption. The first system started running from Dec 2017, producing hot air (around 35 degrees) 66,000m³/h into the cold forming area, to save gas for heating during winter.

In Jan 2023, the new exhausting system in the thread rolling area was set up, letting out hot air (around 35 degrees) 27000m³/h.

Prevention of Pollution:

Vaporizer system and waste-water free

In 2021, Arnold Fasteners (Shenyang) Co. LTD installed a vacuum evaporator system for the electroplating process, to reuse process water and reduce the consumption of fresh water. The wastewater is separated into sludge and distillate, which is then fed back into the process instead of fresh water.

Since it was put into operation in 2021, approx. 18,200 m³ of wastewater have been separated into 17,900 m³ of distillate and approx. 420 tons of sludge. The sludge containing heavy metals, suspended matter, and chemical residues is disposed of properly. Another system commenced operations in June 2023. Now both Evaporators together were able to discharge an amount of approx. 25,000 m³ and approx. 590 tons of sludge.

Other Actions Taken for Environmental Protection:

1. Planting

We organized an onsite tree-planting activity on tree-planting day in 2023, colleagues from CN-Holding went to Changxing island in Shanghai and planted 11 trees together.

We also organized an online planting activity with different Wuerth companies in China. We sent out 300 seeds in can, with which colleagues can grow either carrots or ryegrass either at home or in the office. 6 months later, we received harvesting feedbacks from colleagues in Tianjin, Shenyang and Shanghai.

2. Animal Protection

When it was nearly Mid-Autumn Festival, a representative from the HR department of AP Winner visited the “Baowo” Animal Care Center in Wuxi, and made a donation to the Center. We hope that the animals there do not face any coldness or abandonment in their life, and that they feel the kindness and warmth during the traditional Chinese festival.

Social

HR Development and Engagement:

1. Health and Safety of Employees

1）Chinese medicine session

Wuerth Industry China and Wuerth China Holding held a Chinese medicine session in the company in September 2022.

2）Mental health workshop

In May 2022, Wuerth Business Acadamy APAC organized 2 webtalks “Mental Health and Productivity” for all Wuerth companies in Mainland China in both Chinese and English.

3）Fit with Wuerth

From mid-2022, Wuerth China Holding started to localize the Fit with Wuerth campaign in China. The company organized several sports events and provided relevant trainings.

E.g. Climbing, boating, weekly yoga, badminton, citywalk… etc.

2. Employee benefits

1）Home office policy

3. Employee career development

1）Wuerth Business Academy APAC

2）Cross-department mentor project

Diversity, Equity and Inclusion:

1. New Work Initiative

Wuerth China Holding aligned on a list of topics that can be categorized under the term New Work, for example, flexible working hours, remote work, diversity & inclusion, modern working environment, innovation, etc. We set up a team of 7 with a mix of colleagues from different departments to drive this topic forward. Since the end of 2022, the New Work Working Group yielded on key topics such: dress code, fixed remote-work days every week and so on.

List of Proposals

Meeting Minutes

First Meeting

2. Cooperation with the Inclusion Factory

In 2022, Wuerth Industry China officially launched a cooperation with the Inclusion Group: part of the bolt gasket assembling work was outsourced to the Inclusion Factory. With the urge to know these diligent people better and to extend to them our gratitude, Wuerth Industry China organized a Christmas gifting event with the Inclusion Factory in December 2022.

3. Hiring Disabled People

Wuerth Group hired several disabled colleagues.

4. Anti-harassment guideline and conduct training

Product Liability:

Quality Lab in the Central Distribution Center

The quality lab in the Central Distribution Center owns several professional certifications, a set of lab facilities and process to ensure the product safety and control the quality. The test competences include dimension measurement, mechanical property test, material analysis and hardness, salt spray test, coating thickness test, friction test as well as transverse vibration test. The data from the tests are stored in the SAP system in real time, to make sure that samples match the requirements of the clients. The Center is also equipped with 3D scanners and 3D printers, to quickly test irregular shaped products, and compare product dimensions with design drawings.

Supply Chain:

1. Wuerth Group Supplier Code of Conduct

2. Wuerth Electronics established supplier selection, qualification, phase out and assessment system 4 procedures released covering raw material, maintenance, repair and operation (MRO), transportation suppliers.

Raw material suppliers

Transportation company

MRO suppliers

3. Perform the training, get the commitment, or signed the agreement with suppliers: SPC (Statistical Process Control) training for quality improvement, safety and customs compliance training for subcontract, signed NDA agreement, non-constrain material agreement, substance of very high concerns agreement, purchasing agreement, quality agreement and supplier code of conduct commitment.

4. Supply chain ESG strategies

Using raw materials which comply with ROHS (Restriction of Hazardous Substances), Reach (Registration, Evaluation, Authorization and Restriction of Chemicals), etc. from product new design.
Collect the packaging material and ship back to supplier for reusing like carton box and wire spools.

Focus on using recyclable package to replace the plastics during transportation.

Befor

After

Work with supplier to use recyclable package to replace non-recyclable Polylon type package for core and bobbin suppliers.

Before

After

Sign EHS agreement with suppliers including RBA (Responsible Business Alliance) items.

Sanction list screening for each new supplier and periodically screening for exist suppliers.

Example

5. Supply chain business continual plan implementation

Each commodity needs to have at least two suppliers in the pool
Monthly monitor materials market and assess the supply risk and take action
Annual audit, quarterly business review and supplier rating for the top suppliers and focus on continual improvement
Identify the supply risk by suppliers and develop potential backup source
Backup suppliers are in place for any logistics/transportation business model

Community Engagement:

1. Public Welfare activities related to environmental protection

In 2023, Wuerth Group organized annual recycling activities with OOLA. Each quarter, colleagues are encouraged to donate a category of second-hand objects from books, electronic devices to clothes. Upon receiving the donation, OOLA will treat them in a sustainable way or re-put them into usage.

Wuerth Information Technology, on the other hand, attended the e-waste recycling event of AmCham Shanghai in 2023.

2. Community Investment Projects

1）Jingyue Community

When Christmas was approaching in 2022, the Wuerth Group together with Jingyue Charity Community, arranged a Christmas Handcraft Workshop. In the two community centers of Jingyue, one in Tangzhen and the other one in Yangjing, the Wuerth Group offered Christmas wreath knitting and Christmas painting respectively. With the fund that colleagues in CN-Holding worked out in Fit with Wuerth to collect, CN-Holding bought two running machines for the two campuses after learning that the community center needs sports equipment indoors for the disabled friends.

2）Match Charity

On the 50th anniversary of Sino-German diplomatic ties, Wuerth Group provided a series of cultural exchanges programs with the rural school helped by Match Charity.

3）Shanghai Sunrise

In 2020, Wuerth China Holding started a four-year cooperation with Shanghai Sunrise, a non-profit organization that raises scholarships for high school and university students in need. CN-Holding is committed to sponsoring 5 university students during their 4-year study. Two of the sponsored students also completed their summer internships in Wuerth companies.

Corporate Governance

Governance Organizational and Mechanism:

1. Organizational governance structure (e.g. Wuerth China Holding)

Source: Tianyancha

2. Code of Compliance, Speak Up, Compliance Trainings

The Code of Compliance in China elaborated on the general principles that the Wuerth Group’s employees, customers, suppliers, and other business partners should abide by at work. The principles include: anti-corruption and bribery, support for fair competition, avoidance of interest conflict, data security and information security.

Speakup is a portal for all employees, customers, suppliers and other parties to report concrete information about violations of the law or other illegitimate behavior.

Relevant trainings preventing bribery and corruption must be completed in the e-platform for each employee.

Innovation Sustainability:

1. Strategic Development Plan – Wuerth Industry

Sustainability has been an indispensable part of the Strategic Development Plan (SDP) of the Wuerth Industry companies, by having regional coordinators to motivate and push through the relevant developments. Wuerth Industry APAC is coordinating the efforts via colleagues in China.