Company Name: Vitesco Technologies Holding China Co., Ltd
Award Category: ESG Performance
Company Size: Medium-sized Enterprise Group
Environment
Climate Change:
By 2030, [in line with the EU Commission’s “Fit for 55” specifications] become a leader in electrification through being a leading automotive supplier for electrification and emission-free driving.
In addition, we are intensively committed to Life Cycle Engineering (LCE), with the aim of optimizing the footprint of our products and designing them to be carbon-neutral across their entire life cycle in the long term.
Many large companies are also addressing the topic but are still at the analysis stage. We have already concluded this stage and are taking pioneering role in the supplier industry by implementing life cycle engineering in our corporate processes.
Furthermore, we work with our suppliers and business partners to strive toward climate neutrality along the entire value chain (scope 1, 2, and 3) by 2040 at
the latest.
In addition, we want to save a total of 80 GWh of electricity through energy efficiency projects at our locations by 2030.
We promote sustainability related information and activities and advocacy to Vitesco employees through our online community platform and during sustainability month activity, as shown below.
We also publish our latest sustainability report and carbon neutrality initiatives on official website Vitesco Technologies - Sustainability (vitesco-technologies.com)
Natural Resources and Energy:
With innovative and efficient solutions, we aim to reduce the environmental impacts of the automotive industry worldwide and promote emission-free mobility in the long term. Our Executive Board and our leadership team is fully committed to actively manage the transformation of our portfolio into the electrified future, aiming for profitable growth and continue delivering on operational excellence. Beyond our products, we pursue the goal of advancing sustainability in all business operations along the value chain. Therefore, we promote value creation built on environmental and social responsibility and a solid corporate governance. This is reflected in our strong ambition to drive sustainability in all business activities along the value chain. Our DIRECTION 2030 formulates this in the claim "Driver of Sustainability" and thus identifies sustainability as one of our five strategic focus areas.
We have established EDMS (Energy data management system).
Photovoltaic has been installed to create electric energy through solar power. Annual power generation: by end of 2022, 1,800 MWh/a, and since the end of 2023 will be estimated 2,300 MWh.
Working together with experts to introduce efficient energy efficiency projects.
We also got many certifications from several audits.
We also organize environmental protection Day every year.
Prevention of Pollution:
Vitesco Technologies is committed to complying with the environment relevant laws and regulations, reduce the waste pollution to the environment, and continuously the waste management. Below are the 5 dimensions of our management methods:
Clear classification of wastes
clear classification of wastes
2. Waste management system
develop a waste management system to realize the online record with higher accuracy
3. Waste reduction solution
organize workshops to find more opportunities to reduce the waste
Use recycled packaging instead of single-used packaging
Reuse of the waste products such as the cardboard angle and scrapped cable
Reduce the frequency of maintenance to reduce the waste oil or waste cleaning agent.
4. Increase waste recovery rate
increase the rate of multipurpose utilization of wastes
5. Employee engagement
organize environment activities to improve awareness of our employees
Other Actions Taken for Environmental Protection:
Organize biodiversity training for employees
Social
HR Development and Engagement:
Measures to protect the health and safety of employees
Our Environmental and Health and Safety Policy – The safety and health of our employees is always our number one priority.
As a leading global developer and manufacturer, we put the occupational safety and health of its employees first. Relevant departments regularly carry out publicity and education, arrange various types of vaccinations and health screenings, and purchase supplementary medical insurance for employees. We plan our company's annual health goals and plans based on relevant data and employee needs and publish an overall health policy. At the same time, we also have a comprehensive paid sick leave system, implement home office and flexible office to ensure work-life balance for employees.
At Vitesco Technologies, we believe in creating a comfortable workplace for our employees. The office space is fully covered with sit-stand desks to meet the needs of employees with different working habits. The ergonomic design of the production area improves working comfort and ensures the physical and mental health of front-line employees. Large public leisure areas also create a more welcoming, relaxed, and comfortable office environment.
The physical and mental health of our employees should not be underestimated. In addition to including all employees and immediate family members in the EAP employee care program, we actively carry out various popular science lectures and fun activities. Especially during the epidemic, the 7*24-hour psychological consultation hotline has also effectively solved the troubles of employees' work and life. These thoughtfulness and care are also reflected in every aspect of daily life.
We always adhered to the company culture and created a healthy and progressive cultural atmosphere, which has been recognized by professionals in different industries and won the honor of China Healthy Workplace Certification Diamond Standard Enterprise. In the future, we will continue to improve the corporate health management system, implant "health" into the corporate DNA, and deliver all-round care to every employee.
Employee benefits
We provide a wide range of market competitive benefits for employees. They are grouped into five categories.
Risk Prevention
Embrace a comprehensive insurance package that empowers employees to protect the financial future.
Health & Wellbeing
Fast access to the best treatment: healthcare allows employee to choose from a variety of health cover options.
Wealth
Company provides financial saving plans programs to help employee to build for the future with extra financial help from the company, and avail of some extra savings along the way.
Leisure & Lifestyle
Getting the balance right. A healthy, happy lifestyle is important. Company provides a selection of lifestyle benefits to improve employees’ quality of life.
Other Benefits
A wide range of additional benefits, ensuring employees’ diverse needs are catered to.
Employee career development
We provide employees with a diverse career and skills development platform, in addition to different development paths, there is also a very systematic personnel development process. The development path can be divided into expert path, management path and project management path. Every year, there are seminars dedicated to employee development and succession planning, and there is a very comprehensive training system.
Diversity, Equity and Inclusion:
For Fair Work and Diversity, one of the key performance indicators is the proportion of women in management positions. Here, the company has adjusted its strategic target value: the value is already set to potentially rise to 21 percent by 2026. It is currently 15.4 percent and therefore 1.8 percentage points higher than in the previous year (2021: 13.6 percent).
We commit to the principles of the United Nations Global Compact to support and respect the protection of human rights and to not be complicit in human rights abuses, in line with the Universal Declaration of Human Rights and the UN Guiding Principles for Business and Human Rights. We act in line with the Declaration on Fundamental Principles and Rights at Work and the Core Conventions of the International Labor Organization (ILO). We follow the OECD Guidelines for Multinational Enterprises and are an active supporter of the Sustainable Development Goals.
Diversity is the different set of elements that makes us unique from every other person in existence. There has never been a person like you, and there never will be again. Diversity includes but is not limited to race, color, ethnicity, nationality, religion, socioeconomic status, veteran status, education, marital status, language, age, gender, gender expression, gender identity, sexual orientation, mental or physical ability, genetic information, and learning styles.
Equity is about having equal opportunity to succeed. It centers around fair treatment, access, opportunity, and advancement for all while striving to identity and eliminate barriers that prevent the full participation of some groups. The principle of equity acknowledges that there are historically under-served and under-represented populations.
Inclusion is about the right to equal access and share of power. It is about feeling like one's values and ideas are heard. It refers to authentically bringing traditionally excluded individuals and/or groups into processes, activities, and decision/policy making in a way that shares power and ensures equal access to opportunities and resources.
OUR NORTH STAR
To create a culture where all employees can thrive to their fullest potential.
ENGAGEMENT MATTERS
We want to be a place where every employee can find purpose at work, can feel safe to speak up, and can be confident that they are seen as the individuals they are.
ERGs are voluntary, employee-led groups that foster a diverse and inclusive workplace aligned with Vitesco Technologies’ core values. These groups find a common identity trait that brings them together around a unifying mission. This can be gender, sexual orientation, race, ethnicity, faith, veteran status, disability status, working parents, age, job function, etc.
Product Liability:
Intellectual property of products and services
We are a multinational company that encourages innovation and respects intellectual property rights. In order to protect our innovative achievements, the company has established a complete intellectual property management system and inventor reward system and applies for a large number of patents in major countries and regions around the world every year to protect our company's dozens of products.
Based on a large number of innovative achievements and corresponding authorized patents, 3 R&D centers of our company in China have obtained high-tech enterprise certificates issued by local authorities.
Quality
Management of product safety and quality control
Vitesco Technologies has Quality management system and passed IATF16949 external audit.
Strategies for improving customer service.
Vitesco Technologies has Group Standard ‘Monitoring of Customer Satisfaction’ to cover entire process of customer service improvement. Internal and external KPI are defined in the standard, and Quality report is prepared and reported monthly.
Technical compliance
We have established a comprehensive technical compliance management system. We closely track the progress of technical regulations and standards in main target markets around the world, derive and apply regulatory requirements into our project development process to ensure that our products and product-related services compliant, both on the region of manufactured and target markets.
In areas involving consumer safety, such as functional safety management and cybersecurity, we are committed to complying the state of the art.
Supply Chain:
As “Driver of Sustainability”, we take ownership on this subject and actively engages its business partners to improve the sustainability content along the supply chain.
We strive to reduce carbon emissions as well as resource consumption, further develop our responsible sourcing practices and meet sustainability demands throughout our supply chain. For example:
1. Communicate with supplier about VITESCO TECHNOLOGIES SUPPLIER SUSTAINABILITY INITIATIVE including but not limited to:
Recycled material
We strive for an efficient use of natural resources and to reduce the consumption of raw materials. Therefore, we ask the supplier to consider the use of recycled / secondary materials in all tendered products in the future, wherever this is possible without affecting the technical product characteristics or deteriorating the product durability. Particular attention will be dedicated to the following materials: aluminum, steel, copper, and thermoplastics (currently under investigation).
Decarbonization
We have pledged to be climate neutral in own operations (Scope 1 and 2) by 2030, and to reach climate neutrality on the whole value chain (including Scope 3) by 2040 at the latest. Therefore, the carbon footprint of the products tendered during the quotation process will represent an important nomination factor for all sourcings in the future.
Human rights
We will offer related training (e-learning platform) to the supplier. We will also have Integrity Line to report grievances and complaints.
2. For the business continuity and risk assessment, the Business Partner will regularly conduct comprehensive review of identification and assessment of risks. For identified risks, the Business Partner will invoke immediate mitigation measures and implement backup and continuity plans. These activities must be carried out and tested on a regular basis to minimize the impact of interruptions and disruptions for operations that support Vitesco Technologies’ business.
Community Engagement:
1. Woman Tea Garden project
Since 2020, Vitesco Technologies China has participated in the "Woman Tea Garden project" public welfare program for four years in a row through the China Women's Development Foundation (CWDF) organization. From 2020 and 2023, companies of Vitesco Technologies China in Shanghai, Changchun and Wuhu all participated in the program, and altogether donated more than RMB 100,000 to support the basic operation of more than 50 acres of tea gardens and has effectively helped a total of more than 50 rural poor households out of poverty. Vitesco Technologies China actively helps local women obtain employment opportunities, increase local family income, and help the targeted poverty alleviation in Danzhai, Guizhou province.
Program background information: Danzhai County in Guizhou Province at an altitude of more than 1,000 meters, is a national-level poverty-stricken county. Danzhai's tea culture and tourism resources have not been fully developed and leveraged, and the high-quality zinc selenium tea has no chance to be recognized by the outside world. In order to further leverage social welfare resources and help local poor women shake off poverty and increase income, CWDF integrated the existing tea industry chain in Danzhai and set up the "Woman Tea Garden project", which is a new model for poverty alleviation with very positive social significance. Firstly, to help the poverty alleviation: one acre of tea plantation earnings can help a woman's family in poverty to obtain stable income and get rid of poverty through labor. Secondly, to empower women's development: promoting women's employment to empower their further development. Thirdly, to help rural revitalization: promote the development of local tea culture and tourism industry and implement the strategy of rural revitalization. Finally, to alleviate social problems: help women’s local employment to resolve the issue of left-behind children and the elderly in rural areas.
2. Tree plantation projects
“Powering clean mobility” is the mission of Vitesco Technologies, and sustainability is at the core of our corporate strategy and is emphasized in all our business processes, contributing to climate protection and ecosystem sustainability in practical ways.
In 2023, Vitesco Technologies China planted more than 5,000 Salix trees in Tengger Desert in Wuwei, Gansu Province through the cooperation with a public welfare organization. This initiative fully utilizes desertified land and abundant solar energy resources for sustainable development. Meanwhile, as early as 2021, Vitesco Technologies planted 40,000 trees in the name of its global employees when the company was listed. Again, on the occasion of its anniversary of the listing, the company planted more than 10,000 trees successively, making a modest contribution to the world's green growth and carbon reduction.
3. Green computer classroom projects
Vitesco Technologies China has been carrying out the public welfare activity “Pass on Love” for three consecutive years since 2021. We collect computers and other electronic equipment and entrust the public welfare organization to regenerate them in a professional and standardized manner, to help build computer classrooms in rural schools in need with recycled equipment with good performance. The project combines "poverty alleviation through education", "environmental protection" and "circular economy".
Since 2021, Vitesco Technologies China has built green computer classrooms for four primary schools in Anhui, Jiangxi and Guizhou, donating about 300 computers which benefits thousands of local students and teachers. Volunteers from the company went to these local schools to participate in the activities, help the children in the countryside to learn computer knowledge and skills.
4. Voluntary blood donation activity
Since 2009, Vitesco Technologies China locations have actively responded to the call of local governments to organize public blood donation activities, and more than 1,500 blood donation ambassadors have donated more than 360,000 ml of blood.
Corporate Governance
Governance Organizational and Mechanism:
Corporate Governance
According to the Company Law of the People's Republic of China and the Company’s Articles of Association, the organizational governance structure of the Company includes the shareholder, board of directors, supervisor, and general manager. The shareholder is the highest authority of the Company. The board of directors consists of three directors, one of whom is the Chairman of the board, the directors are appointed by the shareholder. The supervisor is appointed by the shareholder and the general manager is appointed by the board of directors. The shareholder, board of directors, supervisor and general manager exercise their respective powers and duties in accordance with the Company Law of the People's Republic of China and the Company’s Articles of Association.
Data Protection
Vitesco Technologies continuously develops its data protection management for both employees and business partners to ensure that it always complies with the latest legal requirements. Processes, guidelines, and instructions are reviewed annually and revised as needed. The CLIP-Compliance and Data Protection Team is currently working on taking the existing Data Protection Management System to the next level (DPMS v2). From policies management and procedure perspective, Vitesco Technologies China follows the organizational measures as set forth in global Data Protection Management System and Standards to comply with applicable law. Any use of Personal Data relating to employees, suppliers and other individuals is subject to applicable data protection law as well as to the internal policies. To ensure all persons involved in the processing of Personal Data are handling the information appropriately and securely, they are to be trained regularly on the applicable obligations and requirements concerning the protection of Personal Data in accordance with Vitesco Technologies’ data protection training concept. Therefore, as laid out in the Code of Conduct Vitesco Technologies requires each employee to ensure responsible and legally compliant handling of all Personal Data from the outset, and to ensure necessity, confidentiality, integrity, and availability at all steps in the processing of Personal Data in a business process.
Compliance
Its management’s and employees’ compliance with all the requirements that apply to Vitesco Technologies Group AG and its subsidiaries and its internal regulations is therefore an unshakable principle of the Company’s conduct and an integral part of its corporate culture. This is not only expressed in the binding code of conduct, but also in the actions of management and all employees. The Executive Board is explicitly committed to the principles and zero-tolerance approach laid out in the code of conduct.
The structure of our legal-compliance management system (legal CMS) is based on Germany’s IDW PS 980 CMS audit standard and is described in detail in a dedicated Group-wide guideline. In particular, the Legal Compliance team is responsible for corruption prevention, money laundering prevention, antitrust law, data protection, and the management of conflicts of interest.
We have set up a global review and approval system to support and monitor daily operations, from anti-corruption perspective, e.g., gift and hospitality procedures and approvals, with monitoring and auditing on regular basis, as well as risk assessment programs.
We regularly train employees using a multi-stage training concept, on topics including the Code of Conduct, compliance basics, corruption prevention, and antitrust law, and fraud prevention. There are also separate training courses for specific departments as needed.
The Legal Compliance department also makes regular appearances at local, regional, and global onboarding events for new employees and in other development programs.
Innovation Sustainability:
The company’s innovative development input and results
We are applying Eco-design base on sustainability strategy from product life cycle scope, intention is to minimize the environmental and climatic impact.
As a key component of sustainable development, Life cycle engineering mainly includes below subjects.
Inside Vitesco Technologies
Life Cycle Assessment
Calculation of the CO2-Footprint of a product
Identify environmental hotspots of product over the whole product life cycle
Design for Environment (DfE)
Optimization of products in direction to sustainability
Avoid or reduce using less-sustainable materials
Systematically reduce env.carbon footprint of product
Design for Circularity
Design of the product in direction to the 4RE: RE-use / RE-pair / RE-manufacturing / RE-cycling
Outside Vitesco Technologies
Vitesco Technologies keeps long-term effective cooperation with various social institutions which provides an overview in the fields of environment, social affairs, and corporate governance ，and enhance the communication from the scope of regulation and methodologies.
Vitesco Technologies will apply 100% LCA for new products from Y2030.
For instance, now one pilot project EMR 4 contributes significant Eco-design theory for climate protection, reduce the carbon emission and impact for environment.
Extra Points
ESG / Sustainability / CSR reports, e.g.:
Sustainability report
ESG rating, e.g. EcoVadis, MSCI:
MSCI, SUSTAINALYTICS, ISS ESG, EcoVadis, SUPPLIER ASSURANCE, CDP, UN GLOBAL COMPACT
ESG Verification or Certification:
ISO 45001:2018, ISO 50001:2018, ISO 14001:2015, 100% RENEWABLE ELECTRICITY, 三星级绿色建筑设计标识证书，二星级绿色建筑设计标识证书
Responsive to or engaged in ESG Initiatives / Standards / Goals:
纬湃科技设立雄伟目标：致力于2040年实现碳中和价值链
加入联合国全球契约，纬湃科技发布首份可持续发展报告
首次使用气候情景分析，纬湃科技发布集团可持续发展报告
100%可再生能源联盟：纬湃科技加入RE100倡议
自动生命周期评估领域的先驱：纬湃科技推出生命周期工程，优化产品的生态足迹
全生命周期工程里程碑：纬湃科技加入CATENA-X汽车网络联盟
纬湃科技加入“POLESTAR 0计划”，助力打造气候中和汽车
纬湃科技签署联合国“CEO水之使命”项目，助力水资源可持续管理
助力2030碳中和：纬湃科技太阳能电站投入使用
Other ESG related awards, e.g. TOP ESG Employer:
Wuhu HPR Certificate
SHJ HPR Certificate
中国健康场所钻石认证
长春安全生产标准化证书
芜湖安全生产标准化二级证书
芜湖疫情防控突出贡献奖
长春红十字会博爱奖
芜湖安全生产示范企业
QUALITY MANAGEMENT REPORT
客户满意度监督流程
人才发展
DE&I month poster
Supplier sustainability requirements letter
