Autoneum : Corporate Responsibility Report 2023 (3 MB) |

Corporate

Responsibility

Report 2023

Highlights

	Validation of the ambitious			Gold medal		in the		2023 EcoVadis
science-based emission reduction targets
	sustainability rating

TABLE OF CONTENTS

02	Introduction		Net zero
	Highlights 2023		emissions
		target
	Foreword
	About Autoneum
11	Corporate Responsibility framework	in the	Polestar 0 project

16 Sustainable products & production processes Materials & Innovation of resource-efficientproducts Noise reduction of vehicles

Product weight reduction

Environmental compliance168 Energy/Emissions

Water & effluents Waste

Launch of sustainability label Autoneum Blue.

87 community engagement projects

realized worldwide

74%of plants certified

according to

the international standard for energy management systems

28 Fair & attractive workplace Employee engagement Training and education Diversity & equal opportunity Occupational health & safety

36 Good corporate citizenship Anti-corruption& Anti-competitivebehavior Socioeconomic compliance Child labor & forced labor Local communities Indirect economic impact

Implementation of

168 eco-effiency projects for energy, waste and water

More than 34 000 tons of recycled PET used in Autoneum products

Joining of the

United Nations Global Compact

initiative

42 Responsible supply chain management Procurement practices

Supplier environmental and social assessments Material compliance

Sustainable Re-Liner technology

nominated as finalist for 2023 PACE Award

Foreword

Dear Reader,

The automotive industry picked up speed again in the 2023 financial year after three challenging years. With sustainability as an important pillar of Autoneum's strategy, growth must go hand in hand with corporate responsibility. In 2023, we continued to make measurable progress in the areas of environment, social, governance, human rights and compli- ance. By joining the world's largest initiative for sustainable business - the UN Global Compact - Autoneum is also underlining its commitment to sustainable corporate development at its locations worldwide.

The acquisition of Borgers Automotive, which was completed on April 1, 2023, marked a milestone in Autoneum's history. With the takeover, Autoneum acquired important expertise in fully recyclable processes and significantly expanded

its value chain in sustainable technologies and lightweight acoustic and thermal management for vehicles.

The wheel arch liners and truck liners part families and the Propylat technology from Borgers perfectly complement Autoneum's sustainable product offering. As a result, Autoneum launched its new sustainability label Autoneum Blue in 2023, which combines the use of recycled materials with marine conservation and social responsibility. Autoneum Blue is a continuation of LABEL blue by Borgers. The sustainable, textile and lightweight Propylat technology contributes to the reduction of both interior and exterior vehicle noise and to a significant reduction in waste thanks to its complete vertical integration.

The takeover of a company involves the important task of integrating two cultures, including in terms of standardized reporting. One of the first measures in the integration process was the definition of uniform production indicators

Foreword|  Corporate Responsibility Report 2023

3

for all new Autoneum plants. From the outset, teams with representatives from all functional areas worked intensively on standardizing the production key performance indicators (KPIs) in the reporting system so that the acquired plants could report uniformly on their performance. Since May 2023, the new Autoneum sites have been providing solid reporting on KPIs such as accident rates, customer complaints, scrap rates, inventory levels, waste consumption and recycling.

Autoneum succeeded in reducing overall CO₂ emissions by 20.5% on a relative basis and by 36.9% on an absolute basis compared to the baseline in 2019. These results are based on a comparison of the same plants as evaluated since 2019 without the plants acquired from Borgers Automotive. Even including the Borgers plants, the Company is still firmly on track to meet its emissions targets for 2027.

We are committed to taking care of employees - our most valuable resource. The recent engagement survey results show that we have achieved improvement in the three global key areas that we continued to develop in 2023: feedback, recognition and development. Autoneum implemented 100 projects in 2023 to address challenges in areas such as ergo- nomics, workplace and machine safety, air quality and noise control. As part of our efforts to increase employee develop- ment, we have increased the average number of training days per employee to 3.4 per year. This training is a mix of mandatory courses covering topics such as anti-corruption, health & safety and our Code of Conduct, as well as an e-learning platform offering a range of valuable courses including inspiration leadership, teamwork and communication skills. Finally, our employees carried out an impressive 87 social community engagement projects.

In the EcoVadis sustainability rating, Autoneum achieved gold medal status in 2023, placing it in the top 5% of the companies assessed. The Company achieved this in particular thanks to noteworthy progress in its sustainability performance in the two of the four categories assessed, which cover the environment, labor and human rights, ethics and sustainable procurement.

In 2024, the further anchoring of our sustainability strategy and processes at all Autoneum locations will be a focus

of our corporate responsibility strategy. We will continue to place sustainability at the center of our actions in order to meet the challenges of future generations and modern mobility.

Hans-Peter Schwald	Eelco Spoelder
Chairman of the Board	Chief Executive Officer

4 Corporate Responsibility Report 2023 | About Autoneum

About

Autoneum

VALUES AND PRINCIPLES

At Autoneum, a high-performance culture is the key enabler of the Company's long-term business success. This culture serves as both a framework and a guideline for the daily actions of Autoneum's employees and must be exemplified by the Company's executives. While Autoneum expects employees to perform at their best at all times, the Company also provides all the support necessary for their personal and professional development. Furthermore, by creating a safe, motivating and inclusive working environment, Auto- neum continuously improves employee well-being and satisfaction.

Autoneum's six corporate values are:

• Passion
• Accountability
• Innovation
• Global
• Continuous Improvement
• Simplicity

These values represent the Company's DNA. They are integrated into all of the Company's decisions and actions, which enables Autoneum to fulfill its long- term principles:

Delight your customers | Enjoy your work | Fight for profits

Autoneum (legally Autoneum Holding AG) is an internationally active Swiss automotive supplier headquartered in Winterthur, Switzerland. Autoneum is the leading manufacturer of acoustic and thermal protection for vehicles. The Company supplies the majority of the world's automotive manufacturers.

In 2023, Autoneum acquired the automotive business of Borgers Group. In light of this transaction, Autoneum has embarked upon a review of its values and princi- ples, which will be communicated in the second half of 2024.

SUSTA INABILIT Y INTEGR ATED INTO THE COMPANY STR ATEGY

Autoneum's first corporate strategy was established following the Company's spin-off from former parent company Rieter in 2011. With the rise of disruptive trends such as e-mobility and a greater emphasis on sustainable production, the automotive industry is undergoing a fundamental and rapid transformation, producing new challenges but also opportunities.

In 2020, Autoneum undertook a comprehensive review of its strategy in response to these new developments, focusing on six strategic priorities.

Sustainability has been integrated into different areas of Autoneum's strategy and will decisively shape business activities going forward. The purchase of Borgers Automotive has further strengthened Autoneum's line of sustainable parts and components (see the Sustainable products & production processes chapter on page 16 for more information).

Generate profit &	Advance technological
cash for growth	leadership

Execute operational	Be the preferred partner
of our customers
excellence

Focus on sustainable acoustic &	Innovate for new mobility
thermal management solutions

About Autoneum | Corporate Responsibility Report 2023

5

Autoneum is represented in 25 countries worldwide1. The Company employs around 16,500 people worldwide, of which two-thirds are shop floor workers and the remainder work in administration and services.

Autoneum

Locations with minority shareholders

Associated companies and investments

Licensees

North America	Europe			SAMEA	Asia
Canada	USA	Belgium	Germany	Spain	Argentina	China	Indonesia
London,	Aiken, South Carolina	Genk	Berlin	A Rúa	Córdoba	Chongqing	Karawang
Ontario	Bloomsburg, Pennsylvania	Czech Republic	Bocholt	Madrid	Brazil	Dadong	Japan
Tillsonburg,	Duncan, South Carolina	Bremen	Valldoreix	Pinghu
Bor	Gravataí	Oguchi
Ontario	Jeffersonville, Indiana	Ellzee	(Sant Cugat	Shanghai
Brasy-Stupno	São Paulo	Tokyo
Mexico	Novi, Michigan2	Holzerlingen	del Vallès)	Taicang
Norwalk, Ohio	Choceň	Krumbach	Sweden	Taubaté	Tiexi	Malaysia
San Luis Potosí	Hnátnice
Oregon, Ohio	Munich	South Africa	Yantai
Shah Alam
Silao	Hrádek	Gothenburg
Downers Grove, Illinois	Rossdorf-	Guangzhou
Rosslyn
	Rokycany		South Korea
	Jackson, Tennessee	Gundernhausen		Tianjin
	Switzerland	Durban
	Volduchy
	Monroe, Ohio	Sindelfingen	Sevelen		Wuhan	Seoul
		Turkey
	Somerset, Kentucky			Fuzhou
	France	Hungary	Winterthur (HQ)	Thailand
	Valparaiso, Indiana	Bursa
	Aubergenville		India
	Komárom	United Kingdom	Laem Chabang
		Blainville
				Behror	Chonburi
			Halesowen
		Lachapelle-	Poland
			Chennai
		Heckmondwike
		aux-Pots	Katowice
		Stoke-on-Trent
		Moissac	Nowogard
		Ons-en-Bray	Złotoryja

Portugal

Setúbal

INTERIOR FLOOR	INTERIOR TRIM	INTERIOR FLOOR	INTERIOR TRIM
• Inner dashes	• Trunk side trim	• Washable surface flooring	• Headliners
• Needlepunch carpets	• Trunk load floors	• Carpet systems	• Side and rear panels
• Tufted carpets	• Trunk tailgate trim	• Dampers	• (Heated) floor mats
• Floor insulators	• Parcel shelves		• Upper storage
• Inner wheelhouse insulators	• Trunk floor carpets	UNDERBODY	• Bunk bed support
• Inner trunk floor insulators	• Trunk floor trim	• Under engine shields3
• Dampers	• Floor mats	• Heatshields3	ENGINE BAY
UNDERBODY	• Backseat trim		• E-motor and accessory
		encapsulations
• Underbody shields	ENGINE BAY		• Engine and gearbox
• Under battery shields	• Frunks		encapsulations3
• Wheelhouse outer liners	• Engine3 and e-motor encapsulations		• Noise shields
• Outer tunnel insulators3	• Outer dashes
• Heatshields3	• Outer trunk floor insulators
• Battery electromagnetic shields	• Hoodliners
• Outer floor insulators	• Engine top covers3	1 Includes locations with licensees and associated companies and investments.
		2 BG North America headquarters moved to Farmington Hills, MI in 2024

3 Components specifically for vehicles with combustion drive.

6 Corporate Responsibility Report 2023  |  About Autoneum

AUTONEUM VALUE CHA IN

From the fiber to the freeway

Autoneum is the global market and technology leader in the production of sustainable acoustic and thermal parts for vehicles, partnering with automobile manufacturers worldwide. Sustainability criteria are integrated in all stages of the innovation process, ensuring that the Company can meet customers' growing requirements for sustainable production.

1	Purchasing	6	End-of-life
• Upon receiving an order, we buy the direct materials	• When possible, we use mono-material
(e.g., yarns, plastic polymers) and indirect materials/services	solutions (e.g., 100% polyester) to make
	(e.g., machinery energy, cleaning) needed to produce the part		products easier to recycle
	• Materials must comply with hazardous substances and conflict		• This supports the circular economy in the
	material regulations		automotive industry

• We seek to increase the proportion of recycled and low carbon footprint materials in purchased components

2Pre-production

• Materials/components and tools are delivered to plants and supplied to production lines via internal logistics

• A part of the tooling is produced internally

5Use phase

• The Company's lightweight products reduce vehicle noise

• They contribute to low energy and fuel consumption of vehicles

4	Distribution
• Internal quality control checks
the finished products
	• Products are shipped directly to
Production	customers or to warehouses
• Autoneum's global presence ensures short
• Autoneum processes the materials/components in its plants
transportation distances
3 and converts them into products that are tailor-made
for each vehicle model
• Efficient waste disposal and recycling are critical steps
• Operators in the plants receive regular
health & safety training

AUTONEUM IN DI ALOG

Autoneum's business model is characterized by high complexity.

The Company's stakeholders, their requirements and communication are correspondingly comprehensive and diverse.

Employees

Autoneum seeks to strengthen the engagement of employees and managers through employee engagement surveys, idea management, the intranet and digital collaboration platforms and community engagement projects.

Customers

Autoneum focuses on developing strong customer relationships through the development process of products and services, in-house fairs at customer premises, advertising and media and social media communications.

Financial community

Autoneum maintains an open and transparent dialog with shareholders, financial markets, financial analysts and all other stakeholders. The focus here is on shareholder meetings, dialog with financial institutions and analyst and investor days.

About Autoneum | Corporate Responsibility Report 2023

7

Research

Autoneum supports innovation within the automotive industry through cooperation with universities, scientific lead or participation at conferences and the hosting of students on Research & Technology projects.

Media & public

Autoneum fosters a transparent and constructive dialog with the public through media events, publications, social media channels and its website.

Local communities

Autoneum recognizes the importance of building strong ties within the local communities in which the Company operates through community engagement projects, plant visits, neighborhood dialog, open-door events and one-on-one dialog with local official representatives.

Industry associations

Autoneum is an active participant in the industry, with memberships in various organizations, event hosting and participation in working groups.

In 2023, Autoneum's industry association memberships included: Swissholdings, Swissmem, Swiss American Chamber of Commerce - AMCHAM, Swiss Chinese Chamber of Commerce in Shanghai, Shanghai Association of Enterprises with Foreign Investment, Society of Indian Automobile Manufacturers, National Association of Brazilian Auto Parts Manufacturers (Sindipeças).

8 Corporate Responsibility Report 2023  |  Risk table

RISK MANAGEMENT

Autoneum maintains a Risk Management System and procedures for identifying, reporting and managing risks. The Company regularly assesses general business risks related to strategy, operations, finance and litigation. At the same time, it also evaluates risks with Corporate Responsibility components: political, legal and compliance, organizational, environmental, human rights violations and occupational health and safety risks. A dedicated section of the Risk Management System addresses risks related specifically to climate change. An aggregate review of all identified risks and measures to address them is performed continuously by Business Group Controllers and all Heads of Corporate Functions. The review results are summarized in the

Risk Report and presented twice a year to the Board of Directors and the Group Executive Board.

SUSTA INABILIT Y- REL ATED RISK S

The factors listed in the table below represent the main sustainability-related risks for Autoneum Holding AG as of December 31, 2023. The Company regularly reviews the risk factors and adapts them when necessary to capture new developments and events.

The Audit Committee ensures overall supervision of risk management and approval of the risk report by the Board of Directors, see annual report on page 83.

ENV IRONMENTAL MAT TERS

Risk factors	Potential impact	Autoneum's response
Any event that negatively	Regulatory consequences	a) Autoneum systematically identifies and assesses environmental risks for its own
impacts the Company's ability		production and establishes suitable measures to prevent or minimize any
to reach targets for reducing	Reputational risk	environmental threats.
energy, water, emissions,
effluents and waste.		b) Autoneum regulary monitors and reports data for Scope 1, 2 and 3 emissions
		in the Corporate Responsibility Report.
		c) Autoneum adopts a systematic approach to identify, control, reduce and
		responsibly recycle or dispose of waste (both hazardous and non-hazardous)
		in accordance with applicable regulations.
		d) Autoneum invests in water efficiency projects, and recognizes
		effluents as an important material topic that needs to be addressed.
Any event within the produc-	Regulatory consequences	a) Autoneum is committed to not contributing to or benefiting from the illegal
tion process (including the		conversion of natural ecosystems, including illegal deforestation.
supply chain) that has a	Reputational risk
negative impact on		b) Autoneum includes specific commitments on land, natural resources and human
biodiversity and soil		rights in the Code of Conduct for Suppliers to ensure these principles are followed
protection or leads to		throughout the supply chain.
deforestation.
Difficulty in meeting the in-	Negative impact on	a) The Company's R&T department focuses not only on improving products' acoustic
creasing requirements of	awards from OEMs and	and thermal qualities, but also on enhancing their environmental performance.
original equipment manufac-	greater pressure on
turers (OEMs) for sustainable	margins	b) Autoneum's innovation activities are aimed at reducing the consumption of raw
and recyclable thermal and		materials, energy and water in the manufacturing process as much as possible, and
acoustic parts.	Regulatory consequences	keeping the amount of non-renewable resources used in products to a minimum.
Any event in which materials	Legal/regulatory	a) The Company's Code of Conduct for Suppliers defines key principles in
produced by our suppliers	consequences	material compliance and business ethics, the environment, health & safety
with chemical or textile	Negative impact on	and human and labor rights.
processing lead to pollution
in the effluent water or the	the health of local
generation of waste.	communities
	Reputational risk

Any event in which suppliers	Legal/regulatory	To ensure compliance with U.S. Securities and Exchange (SEC) requirements, each
use so-called conflict materi-	consequences	manufacturer in the supply chain must request information regarding the use of
als in additives or catalysts		conflict minerals from their direct suppliers, who, in turn, must solicit that informa-
used in the production of	Reputational risk	tion from the next tier of suppliers.
materials purchased by the
Company.

Risk table|  Corporate Responsibility Report 2023

9

ENV IRONMENTAL MAT TERS

Risk factors	Potential impact	Autoneum's response
Autoneum's suppliers could	Regulatory	a) Autoneum encourages suppliers to use renewable or bio-energy in their
have high Scope 1, 2 and 3	consequences	production process.
emissions.	Negative impact on our	b) Autoneum strives to include as much recycled or bio-derived
	Scope 3 emissions	material as possible.
	target for 2027	c) Autoneum sets out clear Scope 3 emission requirements for suppliers and holds
		regular follow-up meetings on decarbonization opportunities and energy efficiency
		projects at their production sites.
Increasing sustainability	Negative financial	a) Ensure the sustainability strategy fully reflects OEM and ESG requirements.
demands from OEMs (i.e.,	impact on business if	b) Quarterly Steering Committee monitors and reports identified gaps and proposes
recycled content and renew-	operational costs rise
able energy targets, CO2	and the Company misses	countermeasures regularly to the Group Executive Board.
reduction roadmap) could	out on contracts	c) GHG emission target approved by SBTi.
prove challenging for suppli-	Difficulties in finding
ers, increase Autoneum's	d) Systematic KPI for sustainability data in place with financial
operational costs and (in the	suppliers who can
worst case scenario) lead to	meet the growing	incentives for Management.
missed business awards.	sustainability	e) Continuous increase of recycled content in line with customer requirements.
	requirements
		f) Built-in life cycle assessment (LCA) capabilities.
		g) Switch to renewable energy on plant level ongoing in line
		with internal and OEM targets.
		h) Plant-level targets for reducing CO2 footprint, waste and water
		in place in KPI management tool.
The transition to fossil fuel-	Negative financial	a) Deploy energy monitoring systems to identify high energy
free processes, the necessity	impact on business	consumption production processes.
to reduce energy consumption	Negative impact on	b) Establish roadmap to be carbon neutral in operation with associated CAPEX.
and changes in technologies
(i.e., foam to felt) may lead to	investor perception	c) Anticipate need for capex to replace non-sustainable technologies.
process changes and	of Autoneum and there-
consequently higher CAPEX	fore on the share price
and production costs.
Any event in which an employee	Repercussions for the	a) Work environment risk assessments are performed and actions are taken to
within a plant has an accident.	health/living standard of	mitigate or reduce any identified risks. The risk assessment determines what kind
The most significant employee-	an employee and their	of personal protective equipment is required/provided to employees.
related health & safety hazards	family	b) Related to the special tasks, work permission is required before starting work.
in Autoneum production	Legal and regulatory
plants are mechanical, electri-	c) Education and training are provided to all employees in our plants on topics
cal, temperature, ergonomics,	consequences
noise, and chemical exposure.		including machine guarding, accident investigation and reporting, lockout-tagout
Additional risks occur when	Reputational risks	(LOTO), permits to work under specific circumstances, hazardous energy control
performing special tasks (e.g.,	Negative impact on	and working at heights.
hot work, work at height and	d) Address the main root causes of accidents through regular safety campaigns.
in confined spaces).	Autoneum's ability to
	attract operators in the
	plants
Any event that leads to the	Legal and compliance	a) Autoneum provides training on IT security and data protection.
disclosure of employees'	issues	b) The Company's Data Protection Directive is available to employees
personal data.
	Reputational damage	on the intranet.

SOCI AL MAT TERS

Any event that could impact	Legal/regulatory	a) Autoneum ensures that all suppliers comply with material regulations through
the health of the end consumer	consequences	various tools and systems.
due to issues with the materi-		b) Autoneum's material compliance team is responsible for developing processes
als used to make our parts.	Reputational damage
		and tools that ensure the materials purchased and used in products conform with
	Negative financial	both legal and customer requirements.
	impact on business

10 Corporate Responsibility Report 2023  |  Risk table

MAT TERS

Risk factors	Potential impact	Autoneum's response
Any event that leads to	Legal and compliance	a) Autoneum strives to build and foster a culture of diversity and inclusion.
discrimination, such as un-	issues	b) Autoneum implements a benchmark education framework for all Autoneum
equal pay or opportunities,
or cases of harassment and	Negative impact on	employees.
bullying within the workforce.	Autoneum's ability to	c) Autoneum operates an anonymous Speak Up Line, where employees can notify
	retain/hire workers
		us of any potential issues.
	Reputational damage	d) The Company's internal information leaflet on preventing sexual harrassment
		is available to employees on the Intranet.

EMPLOYEE

The Company may be unable to meet its target for share of women in top management positions.

Negative impact on the Company's culture (i.e., lack of diversity in the workforce and the benefits it brings)

Negative impact on Autoneum's ability to attract both top and young female talent to the Company

1. Autoneum has built a roadmap on how to improve representation of women in recruitment and succession planning procedures.
2. The Company's Diversity & Inclusion Board addresses both location-specific and Group-wide diversity challenges.
3. Autoneum's Women's Network provides a platform for women to share experi- ences and best practices in areas such as career development, work-life balance and female leadership.

HUMAN RIGHTS

Any event in which employees	Legal and regulatory	a) Autoneum recognizes freedom of association and collective bargaining as a
are prevented from joining	consequences	fundamental human right. Employees are free to run, form and join employee
labor unions, employee		organizations or work councils, to join labor unions, and to collectively bargain
organizations or work councils	Work stoppage at	or seek representation in accordance with local laws.
in countries in which such	impacted plant	b) Autoneum respects local laws on working hours and provides its employees
organizations are part of the
legal framework.	Reputational risk and	with compensation and benefits that comply with local laws.
	negative impact on
	Autoneum's employee
	retention/attraction
Any event in which suppliers	Legal/regulatory	a) Autoneum's Code of Conduct for Suppliers obliges all suppliers to respect their
do not respect their employ-	consequences	employees' freedom of association (where collective bargaining agreements
ees' rights to organize in trade		between employers and employee organizations are part of the legal framework)
unions.	Work stoppage	as per the International Labour Organization (ILO) conventions on Freedom of
		Association and Protection of the Right to Organise.
	Reputational risk and
	negative impact on
	Autoneum's employee
	retention/attraction
Any event in which suppliers	Legal/regulatory	a) Autoneum continued to implement its Sustainability Assessment Questionnaire
use child/forced labor, or do	consequences	(SAQ), which was updated to reflect new regulations in Europe that ensure the
not respect land rights.	Negative impact on	protection of human rights throughout the supply chain.
	b) Autoneum includes specific commitments on land, natural resources and human
	customer/consumer
	sentiment	rights in our Code of Conduct for Suppliers and asks suppliers to comply with these
		principles throughout the supply chain.

ANTI- CORRUPTION

Any event that could lead to	Legal/regulatory	a) Nominal values for gifts and entertainment are set out in the Bribery, Corruption
allegations of corruption, such	consequences,	and Money Laundering Prevention Directive, which all employees have to sign
as employees inappropriately	including fines	when they join the Company.
accepting or providing gifts or	Negative impact on	b) Autoneum has mandatory education and training on identifying and dealing with
invitations to events from
customers, suppliers or	customer/consumer	corruption and anti-competitive behavior.
government officials	sentiment	c) Autoneum operates a Speak Up Line, where employees and business partners
		can anonymously notify us regarding any potential misconduct.