GB : CDP Report - Climate Change 2022

GB Auto - Climate Change 2022

C0. Introduction

C0.1

(C0.1) Give a general description and introduction to your organization.

GB Auto is a leading automotive company in the Middle East and a non-bank financial services provider in Egypt with markets in Iraq and Egypt, with over 23,000 employees driving its operations to success. GB Auto's revenues in the reported year (FY 2021) were 31,437 Million EGP. With a rich, and diversified business portfolio and footprint across the region, GB Auto strives to embody excellence in every aspect of its business. With a diverse human capital which compiled years of experience in their field of expertise, GB Auto Group occupies a remarkable leadership in the markets it operates in. The company is also making a name for itself as a front-runner in the manufacturing and distribution of two- and three-wheelers, as well as Commercial Vehicles and Construction Equipment. GB Auto has established itself as a fully integrated one-stop shop automotive provider that delivers on promises of lower ownership costs and real value to customers. GB Auto's portfolio of partners currently includes the leading global brands of 1) passenger cars: Hyundai, Mazda, GWM, Fabrika, Chery, Changan, 2) tires: Goodyear, Lassa, Yokohama, Westlake, Techking, Doublestar and Verde. While sustaining its core operations in the manufacturing, sale, and after-sales of top quality and reliable automotive vehicles, the company began tapping into different industries with the aim of extending additional services to its customers that complement its core offerings. After settling on expansion into the financial services industry, the company split its operations in 2017 into two distinct business lines, Auto & Auto Related and GB Capital, to better reflect its mission of producing top quality automotive products and equipping people with the necessary capital to access them.

In efforts accelerate our environmental, social, and governance performance, we are currently in the progress of developing an integrated Environmental and Social Management System on a group level across all GB Auto's operations, in which we aim to incorporate a holistic Climate Change Risk Management System and integrate it within our current Group Risk Management Framework. This year marks our second disclosure year to CDP's Climate Change questionnaire and reporting of our operational GHG emissions in accordance with global standards such as the GHG Protocol. Building on our accelerating efforts we published our sixth sustainability report and our first GRI report., in accordance to the Global Reporting Initiative (GRI) Standards, Task Force on Climate-Related Financial Disclosures (TCFD), and the United Nations Sustainable Development Goals (UN SDGs) in Q1 2022. We will be publishing along our Second Carbon Footprint Report which will disclose our 2021 GHG emissions as well as additional details and sections related to the data disclosed in this questionnaire.

In 2021, in response to climate change issues: GB Auto launched four CNG-powered passenger car models as part of our shift to sustainable mobility strategy, launched the "For a Better Future" campaign, and competition amongst employees to reduce electricity consumption at both; GB Auto premises and their homes; planned the installation of solar PV systems at Prima and El Sadat manufacturing facilities by March 2022 and January 2023 respectively, that will supply 40% and 25% of the facilities' annual energy needs; Phased out diesel fuel completely at Prima Plant, and currently implementing the phase-out plan across all manufacturing facilities to be replaced with natural gas and renewable sources; Planned the installation of another wastewater recycling system at El Sadat factory (to operate in 2022), in addition to that installed in Badr ; factory in 2020. Additionally, in terms of governance developed GB Auto Group ESG Policy; developed GB Auto Group ESG Strategy 2022-2025 with 2030 Vision; and engaged with GB Auto employees and top management on ESG issues and conducted a group-wide ESG workshop.

The boundaries included in this reporting period include facilities and sites across both Egypt and Iraq. The facilities in Egypt include 5 factories; Elsadat Plant, Badr Plant, Prima Plant, CITI Factory, and Polo Factory, in addition to 25 service centres/ showrooms, and 5 office buildings (GB Capital). While the facilities in Iraq include 1 admin building, 5 service centers, 8 showrooms, and 9 showrooms and service centers (16, 2 of which were introduced in 2021), 5 warehouses and 4 outlets.

For further information, the links can be accessed as indicated below:

Website: https://ir.ghabbourauto.com/en

Sustainability report: https://indd.adobe.com/view/5bc2ff0f-4821-4931-980b-b884090100e8

C0.2

(C0.2) State the start and end date of the year for which you are reporting data.

	Start date	End date	Indicate if you are providing emissions data for past reporting	Select the number of past reporting years you will be providing emissions data
			years	for
Reporting	January 1	December 31	Yes	1 year
year	2021	2021

C0.3

(C0.3) Select the countries/areas in which you operate.

Egypt

Iraq

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C0.4

(C0.4) Select the currency used for all financial information disclosed throughout your response.

EGP

C0.5

(C0.5) Select the option that describes the reporting boundary for which climate-related impacts on your business are being reported. Note that this option should align with your chosen approach for consolidating your GHG inventory.

Operational control

C-TO0.7/C-TS0.7

(C-TO0.7/C-TS0.7) For which transport modes will you be providing data?

Light Duty Vehicles (LDV)

Heavy Duty Vehicles (HDV)

C0.8

(C0.8) Does your organization have an ISIN code or another unique identifier (e.g., Ticker, CUSIP, etc.)?

Indicate whether you are able to provide a unique identifier for your organization	Provide your unique identifier
Yes, a Ticker symbol	AUTO

C1. Governance

C1.1

(C1.1) Is there board-level oversight of climate-related issues within your organization? No

C1.1c

(C1.1c) Why is there no board-level oversight of climate-related issues and what are your plans to change this in the future?

	Primary reason	Board-level oversight	Please explain
		of climate-related
		issues will be
		introduced within the
		next two years
Row	GB Auto has newly developed its	Yes, we plan to do so	Sound corporate governance is the basis of GB Auto's decision-making processes. The company relies on the policies and procedures instated
1	Group Sustainability Strategy	within the next two	under the guidance of its Board of Directors (BoD) to ensure that the company operates transparently, ethically, and responsibly. GB auto is
	2022-2025 (with 2030 vision) in	years	currently in the process of integrating a sound ESG management system for all its operations and has already completed the quantification of the
	2021, in addition to a group ESG		group GHG emissions for 2020 and 2021. Within the next two years, the BoD will be involved in all climate-related & ESG decisions.
	Policy.

C1.1d

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(C1.1d) Does your organization have at least one board member with competence on climate-related issues?

	Board	Criteria used to assess competence of board member(s) on climate-related issues	Primary reason	Explain why your organization does not have
	member(s)		for no board-level	at least one board member with competence on
	have		competence on	climate-related issues and any plans to
	competence on		climate-related	address board-level competence in the future
	climate-related		issues
	issues
Row	Yes	GB Auto's Chairman has shown his commitment towards sustainability-related actions and initiatives over the past
1		years through developing and communicating the company's progress and sustainability performance through the
		annual sustainability reports since 2016. The Group's chairman has also committed to the UNGC principles since
		2013. https://www.unglobalcompact.org/participation/report/cop/create-and-submit/active/46251
		In addition, GB Auto's CEO has been actively engaged in the development of the Group's first comprehensive
		materiality assessment, Sustainability Strategy 2022-2025 with 2030 Vision, as well as the Group's ESG Policy,
		which have been developed , approved, and disseminated across all subsidiaries and company's departments
		during 2021.

C1.2

(C1.2) Provide the highest management-level position(s) or committee(s) with responsibility for climate-related issues.

Name of the position(s) and/or	Reporting	Responsibility	Coverage of	Frequency of reporting to the board on
committee(s)	line		responsibility	climate-related issues
Chief Executive Officer (CEO)	<>	Both assessing and managing climate-related risks and opportunities		Quarterly
	Applicable>
Risk committee	<>	Both assessing and managing climate-related risks and opportunities		Quarterly
	Applicable>	Ensures objective reporting on the company's performance, and focuses on financial
		operations and risk management.
Other, please specify (Group	<>	Both assessing and managing climate-related risks and opportunities		More frequently than quarterly
Manufacturing Officer)	Applicable>	The Group's Manufacturing Officer identifies risks and regulations regularly with the
		responsible departments.
Other, please specify (Audit	<>	Other, please specify (Assessing the achievement of our ESG targets as defined in our		Quarterly
Committee)	Applicable>	2022-2025 Strategy with 2030 Vision.)

C1.2a

(C1.2a) Describe where in the organizational structure this/these position(s) and/or committees lie, what their associated responsibilities are, and how climate- related issues are monitored (do not include the names of individuals).

GB Auto has newly developed its Group Sustainability Strategy 2022-2025 (with 2030 vision) in 2021, in addition to a group ESG Policy. Within the next year two years, GB Auto's organizational structure is planning to incorporate the following roles and responsibilities concerning climate-related issues:

1) CEO:

• Design and update the company's strategy, including climate-related aspects, in which very quarter, the board of Directors meets and climate- related issues to be included in the agenda, including but not limited to the decarbonization action plan implementation status , actions and measures taken and ESG reporting summary including climate- related identified risks and opportunities.
• Management of the Sustainability issues in general and climate-related issues in specific lie under the CEO and sustainability champions in each department.

New projects and actions include:

• Approve sustainability targets
• Disseminates the orders to heads of departments with sustainability initiatives such as workshops, needed data to be included in sustainability report, etc.
• Development of the yearly sustainability report
• Development of the yearly carbon footprint report
• Setting and communicating emission reduction targets with the different lines of businesses.
• Development and supervising the implementation of the decarbonization action plan
• Climate information disclosure
• Supply chain sustainability awareness and decarbonization

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2) RISK COMMITTEE

• Foresee any adverse impacts and risks from our activities and adopt measures to eliminate conditions that may create those impacts.
• Review and approve the risk management framework, and to recommend to the Board changes to the risk management policy and overall risk appetite of the Group
• Review and report to the Board on the soundness of the risk management framework and monitor the Group's performance against its risk appetite. c) Review and monitor new and emerging sources of risk and the risk controls and mitigation measures that management has put in place to deal with those risks.
• Review and recommend to the Board the disclosure of material business risks in the directors' report.

3) GROUP MANUFACTURING OFFICER

• Oversee manufacturing and environmental risks in operations.
• Perform regular data analysis of sustainability key metrics, look for improvement opportunities, and gather feedback from stakeholders.
• Drive various projects with the project teams to improve critical manufacturing and production processes and drive sustainable solutions and sustainable cost reduction in alignment with decarbonation plan.

4) AUDIT COMMITTEE

• Oversee that all departments are working towards including the sustainability targets in their operations
• Ensure alignment of our sustainability and business strategy, embed sustainability considerations into strategic business planning and decision-making.
• Oversee what has management identified as the company's ESG risks and opportunities, and which ESG frameworks or standards are they using? Why have they chosen a particular framework?
• Oversee the ESG processes and controls, to evaluate data collection policies and what controls are in place to ensure that ESG information is reliable and complete?
• Oversee ESG assurance by looking into whether investors or other stakeholders requested assurance over the ESG reporting, and if so what level of insurance do they prefer?

C1.3

(C1.3) Do you provide incentives for the management of climate-related issues, including the attainment of targets?

	Provide incentives for the management of climate-related issues
Row 1	Yes

Comment

C1.3a

(C1.3a) Provide further details on the incentives provided for the management of climate-related issues (do not include the names of individuals).

Entitled	Type of	Activity	Comment
to	incentive	incentivized
incentive
All	Non-	Behavior	Every year we conduct a sustainability-themed campaign for all employees. This year's campaign was based on the biggest savings in the electricity & water consumption
employees	monetary	change related	between months of Oct & Nov. 2021. There was 1 winner that won a Dinner buffet at Biba's Restaurant at Mövenpick Hotel Cairo- Media City for the whole family.
	reward	indicator
All	Non-	Behavior	Cooperating and assisting with the compilation of the data and information needed to develop our annual carbon footprint report and GRI sustainability reports.
employees	monetary	change related	Sustainability Champions are located at all offices/facilities to drive and monitor the implemented sustainability initiatives, and collected the needed data for reporting,
	reward	indicator	these focal points are recognised and hold a second title pertaining to corporate sustainability - related activities and participation.

C2. Risks and opportunities

C2.1

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(C2.1) Does your organization have a process for identifying, assessing, and responding to climate-related risks and opportunities?

Yes

C2.1a

(C2.1a) How does your organization define short-, medium- and long-term time horizons?

	From (years)	To (years)	Comment
Short-term	0	3	Corresponds to the timescale of implementing quick-win actions during the reporting year and the subsequent two years.
Medium-term	3	15
			The medium-term time horizon is addressed via the Strategic Planning process.
Long-term	15	30
			Corresponds to the time frame set out in the Science-based target criteria.

C2.1b

(C2.1b) How does your organization define substantive financial or strategic impact on your business?

We define "substantive impacts" as those that have the potential to impact business activities, and both customer, and employee experience in a negative or positive impact. Especially that GB Auto we are preparing to launch our revamped brand, and want to be more than a provider of products and services but an enabler of solutions that bring value to people and promote more sustainable ways of being.

There are two criteria used to define substantive financial or strategic impact when identifying or assessing climate-related risks:

• The severity in terms of impact on reputation, operating costs, and revenue
• The frequency with which the risk could arise

We regularly assess our operating environment and pinpoint top and emerging risks to see which have a drastic effect on GB Auto. Risks are identified, discussed, and actioned by senior leaders and reported quarterly to the Risk Committee of the Board and the Board. Specific plans to mitigate top and emerging risks are prepared, monitored, and adjusted as required.

An operational risk would be the absence of a critical supplier, when no alternative suppliers are there.

A financial risk would include whether financial loss exceeds a certain threshold, the point at which it should be mitigated.

Any risk/impact which has the potential of disrupting production and/or preventing access to markets and/or whenever the impact will negatively affect more than 1% of net income.

C2.2

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(C2.2) Describe your process(es) for identifying, assessing and responding to climate-related risks and opportunities. Value chain stage(s) covered

Direct operations

Downstream

Risk management process

Integrated into multi-disciplinarycompany-wide risk management process

Frequency of assessment

Annually

Time horizon(s) covered

Short-term

Medium-term

Long-term

Description of process

In 2020, GB Auto started to conduct it first GHG calculations and plans to continue to do so on an annual basis and publishing information about its performance and progress towards the set targets in its annual Carbon Footprint report.

Continuing on to 2021, GB Auto accounts for the GHG emissions generated by its internal operations at its owned facilities. All the data collected and analyzed within this report follow the World Resources Institute Greenhouse Gas Protocol principles of relevance, completeness, consistency, transparency, and accuracy. The year 2020 serving as the base year (BY) against which all upcoming years will be compared.

The operational boundaries included GHG emissions of our main activities, embracing direct emissions from controlled equipment and assets, emissions from purchased electricity, and selected indirect emissions resulting from our operations within Egypt and Iraq. The analysis and calculations were based on the Greenhouse Gas Protocol, the Intergovernmental Panel on Climate Change (IPCC) Guidelines for Greenhouse Gas Inventories, and the ISO 14064-1:2018 standards with the baseline being 2020.

A decarbonization action plan is currently being developed covering operational, management and infrastructure aspects while also prioritizing the mitigation projects and measures according to their ease of implementation , financial indicators and positive environmental and social impacts.

The implementation of the plan is expected to begin one developed, in the next two years, and will be monitored on a quarterly basis, and the progress against emission reduction targets will be published in the annual carbon footprint as well as disclosed to internal and external stakeholders . This also includes a training and capacity building plan targeting all departments in the company on climate change impacts , risks and opportunities , GHG calculations , decarbonisation action plan among other ESG material topics. This is complemented by a continuous assessment of ESG performance and development of the annual sustainability report according to GRI standards, that will be also be conducted on an annual basis.

Risk/impact identification Process: The process of impact/risk identification includes scoping sessions with key stakeholders and GB Auto's internal experts and the company's sustainability consultants. Once confirmed , the impacts/risks are assessed using a typical impact assessment methodology taking into consideration impact probability of occurrence , intensity , spatial and temporal scale, and sensitivity of receptors.

Management and Monitoring plan: The decarbonisation action plan shall include the actions and measures , the roles and responsibilities besides performance indicators and objectively verifiable indicators. The objectively verifiable indicators are expected to be monitored following the frequency indicated in the plan . This shall be conducted by the different lines of businesses and supervised by the Sustainability Department and the CEO.

C2.2a

(C2.2a) Which risk types are considered in your organization's climate-related risk assessments?

		Relevance	Please explain
		&
		inclusion
	Current	Relevant,	Compliance with the latest sustainability, and more specifically climate-related regulations, is ensured through constant monitoring. The company takes steps to ensure that they comply
	regulation	always	with applicable laws and regulations and identify any new emerging regulations. We are working on having 100% facilities certified according to ISO 50001. In addition, the certification
		included	body confirmed the company's compliance with ISO 14001-2015 for environmental management.
	Emerging	Relevant,	Continuing on the above, we will conduct a comprehensive review and assessment regarding legal and regulatory compliance with a specific focus on new and emerging requirements
	regulation	always	towards management and disclosure of sustainability performance by 2023.
		included
	Technology	Relevant,	We commit to utilizing the power of technology and innovation to leverage better decisions, improve accessibility and efficiency, and generate novel solutions for a more sustainable future.
		always	We aim to have 100% of eligible services digitized by 2025, and products with enhanced sustainability characteristics would be present in each product line by 2025.
		included
	Legal	Relevant,	There are no direct climate-related laws in Egypt. However, local legal mandates related to environmental compliance, is abided by at all our manufacturing facilities, which includes
		always	environmental records submission, and health and safety records.
		included
	Market	Relevant,	We will collaborate with our partners, consider regulatory development and collect market insights to pace the transition for every customer segment towards sustainable mobility solutions
		always	such as low-carbon vehicles.
		included
	Reputation	Relevant,	Since inception, GB Auto has established a highly regarded reputation for its automotive service offerings with over six decades in the industry. At GB Auto we believe that sustainability is
		always	the only strategy for business success. A corporate design focused on sustainability enhances the brand value, responds to consumer demands, attract valuable talent, increases
		included	operational efficiency and employee productivity.
			We commit to creating internal systems and procedures that facilitate the highest quality standards while ensuring effective identification, assessment and mitigation of financial and ESG
			risks. As such, we will incorporate ESG factors into the Audit Committee Charter, Risk and Control Framework and Internal Audit Manual by 2023.
			In addition, while a large share of our business is currently built on vehicles that run on internal combustion engines, we see the rapidly changing landscape towards hybrid, electric, and
			other more sustainable options, represented by both brands and shifts in customer preferences, and that's why at GB Auto we invest in R&D to know the market needs. A reputation risk
			could lead to changes in consumer preferences, possibly affecting market share and growth potential.
	Acute	Relevant,	We are greatly dependent on our the upstream value chain for materials and parts required for manufacturing of automobiles. Extreme climatic conditions like heavy rains, floods or any
	physical	sometimes	other sudden climate change imposes the risk of disruption of our supply chain, bringing our operations at halt and thereby affecting the business. The main external suppliers for GB Auto
		included	are China, India, and Korea, and their operations can be affected by climate change impacts such as recent flooding, heatwaves, etc.
	Chronic	Relevant,	Continuing on the above, chronic physical risk can have direct impact on our production facilities and supplier's facilities thus the category is relevant and is expected to be always included
	physical	sometimes	in risk assessments. Another long-term physical impact is sea-level rise affecting facilities in coastal zones which GB Auto depends on for imported vehicles/parts.
		included

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C2.3

(C2.3) Have you identified any inherent climate-related risks with the potential to have a substantive financial or strategic impact on your business?

Yes

C2.3a

(C2.3a) Provide details of risks identified with the potential to have a substantive financial or strategic impact on your business. Identifier

Risk 1

Where in the value chain does the risk driver occur?

Direct operations

Risk type & Primary climate-related risk driver

Current regulation

Enhanced emissions-reporting obligations

Primary potential financial impact

Increased indirect (operating) costs

Climate risk type mapped to traditional financial services industry risk classification

Company-specific description

GHG and CAFE mandates, fuel economy regulations, emissions levels for CO2 and other greenhouse gases) in domestic and international jurisdictions of operation. Current laws, regulations and governmental policies' relevance regarding increased fuel economy requirements and reduced greenhouse gas emissions, have a significant effect on how we do business. Additional costs/investment as well as significant management resources could be required to maintain compliance with current regulatory restrictions related to climate change

Time horizon

Unknown

Likelihood

More likely than not

Magnitude of impact

Medium

Are you able to provide a potential financial impact figure?

No, we do not have this figure

Potential financial impact figure (currency)

Potential financial impact figure - minimum (currency)

Potential financial impact figure - maximum (currency)

Explanation of financial impact figure

Cost of response to risk

Description of response and explanation of cost calculation

Comment

Identifier

Risk 2

Where in the value chain does the risk driver occur?

Please select

Risk type & Primary climate-related risk driver

Technology

Substitution of existing products and services with lower emissions options

Primary potential financial impact

Decreased revenues due to reduced demand for products and services

Climate risk type mapped to traditional financial services industry risk classification

Company-specific description

The global automotive industry is experiencing significant change as a result of evolving regulatory requirements for fuel efficiency, greenhouse gas emissions and other tailpipe emissions and emerging technology changes, such as electrification and autonomous driving. Our future performance depends on our ability to offer innovative, attractive products.

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Time horizon

Long-term

Likelihood

More likely than not

Magnitude of impact

Medium-high

Are you able to provide a potential financial impact figure?

No, we do not have this figure

Potential financial impact figure (currency)

Potential financial impact figure - minimum (currency)

Potential financial impact figure - maximum (currency)

Explanation of financial impact figure

Cost of response to risk

Description of response and explanation of cost calculation

Comment

C2.4

(C2.4) Have you identified any climate-related opportunities with the potential to have a substantive financial or strategic impact on your business?

Yes

C2.4a

(C2.4a) Provide details of opportunities identified with the potential to have a substantive financial or strategic impact on your business. Identifier

Opp1

Where in the value chain does the opportunity occur?

Direct operations

Opportunity type

Markets

Primary climate-related opportunity driver

Access to new markets

Primary potential financial impact

Increased revenues through access to new and emerging markets

Company-specific description

Yes, some opportunities include health and safety procedures to our employees in order to ensure they're following their requirements. Our employees receive fair compensation, benefits, and different types of additional support.

The subsidiary GB Capital provides financing to emerging businesses and projects, among other ventures, which creates multiple opportunities for economic successes and growth.

Time horizon

Medium-term

Likelihood

Very likely

Magnitude of impact

Medium

Are you able to provide a potential financial impact figure?

No, we do not have this figure

Potential financial impact figure (currency)

Potential financial impact figure - minimum (currency)

Potential financial impact figure - maximum (currency)

Explanation of financial impact figure

Cost to realize opportunity

Strategy to realize opportunity and explanation of cost calculation

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Comment

Identifier

Opp2

Where in the value chain does the opportunity occur?

Downstream

Opportunity type

Products and services

Primary climate-related opportunity driver

Development and/or expansion of low emission goods and services

Primary potential financial impact

Increased revenues resulting from increased demand for products and services

Company-specific description

Low emission technologies are constantly being encouraged through regulations that impose new standards or support sales through potential fiscal incentives. Climate change is generating new market opportunities, based on growing environmental consciousness among consumers. Public and private companies are also paying greater attention to fuel efficiency and emissions of the vehicles they purchase and are including environmental requirements in fleet tenders.

Time horizon

Medium-term

Likelihood

Virtually certain

Magnitude of impact

High

Are you able to provide a potential financial impact figure?

No, we do not have this figure

Potential financial impact figure (currency)

Potential financial impact figure - minimum (currency)

Potential financial impact figure - maximum (currency)

Explanation of financial impact figure

Cost to realize opportunity

Strategy to realize opportunity and explanation of cost calculation

Comment

Identifier

Opp3

Where in the value chain does the opportunity occur?

Direct operations

Opportunity type

Resource efficiency

Primary climate-related opportunity driver

Use of more efficient production and distribution processes

Primary potential financial impact

Reduced indirect (operating) costs

Company-specific description

Competitive opportunities may arise for GB Auto if the Group is able to offset the increase in cost due to likely future energy and fuel price increase and taxation through a decrease in its energy consumption.

Time horizon

Medium-term

Likelihood

Very likely

Magnitude of impact

Medium-high

Are you able to provide a potential financial impact figure?

No, we do not have this figure

Potential financial impact figure (currency)

Potential financial impact figure - minimum (currency)

Potential financial impact figure - maximum (currency)

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Explanation of financial impact figure

Cost to realize opportunity

Strategy to realize opportunity and explanation of cost calculation

Comment

C3. Business Strategy

C3.1

(C3.1) Does your organization's strategy include a transition plan that aligns with a 1.5°C world?

Row 1

Transition plan

No, but our strategy has been influenced by climate-related risks and opportunities, and we are developing a transition plan within two years

Publicly available transition plan

Mechanism by which feedback is collected from shareholders on your transition plan

Description of feedback mechanism

Frequency of feedback collection

Attach any relevant documents which detail your transition plan (optional)

Explain why your organization does not have a transition plan that aligns with a 1.5°C world and any plans to develop one in the future

• We developed a Group sustainability strategy which includes four pillars and fifteen commitments, each connected to one or more SDGs. They are detailed in areas of work and targets that reflect international commitments and recommendations of authoritative organizations, as well as sectoral and contextual peculiarities.
• Following the CFP assessment GB auto aims to set reduction targets for scopes 1,2, and 3 emissions in line with the 1.5 degrees scenario by 2028

(40.8% Scope 1-2 emissions reductions, and Scope 3 emissions by 33.6% by 2028)

• GB Auto is currently working on devising a climate transition plan in line with the 1.5DS that would help achieve the set science-based reduction targets, within the coming two years.

Explain why climate-related risks and opportunities have not influenced your strategy

C3.2

(C3.2) Does your organization use climate-related scenario analysis to inform its strategy?

	Use of climate-related	Primary reason why your	Explain why your organization does not use climate-related scenario analysis to inform its strategy and any plans to use it in
	scenario analysis to inform	organization does not use climate-	the future
	strategy	related scenario analysis to inform
		its strategy
Row	No, but we anticipate using	Lack of internal resources	GB Auto did not adopt climate-related scenario analysis during the reporting year and the base year. During which the main focus has
1	qualitative and/or quantitative		been on quantifying GHG emissions, conducting an ESG gap analysis, developing a group sustainability strategy and designing a
	analysis in the next two years		training and capacity building program. GB Auto however plans to start adopting a climate-related scenario analysis by 2023.

C3.3

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