Vitesco Technologies : Sustainability Report 2023

DRIVER OF SUSTAINABILITY

SUSTAINABILITY REPORT 2023

The Vitesco Technologies Group is a supplier of modern drive technologies and electrification solutions for sustainable vehicles. Its product portfolio comprises electric drive units, electronic controls, sensors, actuators, and solutions for treating exhaust gases. With more than ten years' experience in electric vehicles, Vitesco Technologies offers trailblazing solutions for all the possible steps to electrification that will be taken for all the drive technology developments in the future. TheCompany has production and development sites in all growing markets (China, Europe, and North America). In the 2023 fiscal year, the Group achieved sales of €9.2 billion and had 35,528 employees at approximately 50 sites. Vitesco Technologies Group AG is the parent company and has been based in Regensburg, Germany since September 30, 2021.

www.vitesco-technologies.com

TABLE OF CONTENTS

Forewords 04

Overview 07

Sustainability AgendaSustainability Scorecard

Company portrait 13

Sustainability management 16

Material reporting topics 20

Report profileClean MobilityClimate ProtectionResource Efficiency and CircularityFair Work and DiversityResponsible Sourcing and PartnershipsOccupational Health and SafetyBusiness Ethics and Compliance

Product Compliance and Quality 76

TCFD reporting 79

Disclosures in accordance with the EU Taxonomy Regulation 83

Annex 92

IndicatorsGRI content indexSASB indexSDG indexMethodology used for calculating greenhouse gas emissions

Publication details 110

Table of Contents

FOREWORD BY ANDREAS WOLF

TO OUR STAKEHOLDERS

Foreword by Andreas WolfDear readers,

2023 was a challenging year: in addition to Russia's ongoing war of aggression against Ukraine, various geopolitical crises impacted the earnings and prospects of many businesses. Despite the challenges, I am pleased about Vitesco Technologies' continued good business performance.

Thanks to the commitment of our employees among others, our company kept growing, expanding its order backlog, and positioning itself internationally as a leading provider of electrification solutions. At the same time, we achieved measurable improvements in advancing towards our strategic sustainability goals.

New challenges await us in 2024: The planned merger with Schaeffler and the resulting larger group of companies will enable us to utilize and contribute our expertise even better. Together with Schaeffler, we will open a new chapter in what is now our common company history - and join forces to advance further along the road to cleaner mobility.

How we tackled our sustainability goals in the past fiscal year, and how well we succeeded, is the central topic of what is now Vitesco Technologies' third Sustainability Report. The standards of the Global Reporting Initiative and the Sustainability Accounting Standards Board provided important points of reference for its preparation; the Sustainable Development Goals and the United Nations Global Compact were also taken into account. We also followed the recom-mendations of the Task Force on Climate-related Financial Disclosures. Using these frameworks, we seek to provide you, our stakeholders, with the transparency and comparability you need to make informed decisions.

In this spirit, I wish you an informative and stimulating read.

Andreas Wolf

Chief Executive Officer

FOREWORD BY INGO HOLSTEIN

TO OUR STAKEHOLDERS

Dear readers,

Three words sum up what we are all about at Vitesco Technologies: "Electrified. Emotion. Everywhere." And if you are wondering where sustainability comes into all this, the answer is easy: in our business model. As a provider of intelligent electrified drive systems, we are primarily concerned with one thing: the decarbonization of the transport sector.

This commitment is an expression of the corporate responsibility we assume towards people and the envi-ronment for our entire value chain. In this Sustainability Report, we seek to provide you with comprehensive information on all the material topics associated with this. So in the following report, you will learn more about our strategic sustainability goals and the measures and management tools we use to achieve them.

First of all, a few highlights from the reporting year: by setting up our HR management system and establishing a Human Rights Committee, we took important measures to promote human rights within and outside our com-pany. Independent analysts recognized the sustainability of our business practices, with MSCI, Sustainalytics and EcoVadis once again raising their ratings of Vitesco Technologies' environmental, social and governance (ESG) performance. Another success was the certifi-cation of our short-term climate targets by the Science Based Targets initiative. The certification confirms thatwe are pursuing a science-based approach with our climate protection strategy.

Together with our employees, we took further important steps in 2023 to make our company more sustainable. Among other things, we launched Vitesco Technologies Sustainability Community, which has enabled all employees to work together on sustainable projects across the Group and raise their awareness of environ-mental issues ever since. We are also particularly proud of the successful launch of our resilientMIND mental health program, which is designed to foster the well-being of our employees and promote a healthy working envi-ronment.

We are also preparing intensively for new regulatory developments, e.g., in connection with the latest amendments to the EU Taxonomy Regulation and the EU Corporate Sustainability Reporting Directive. The aim is to fully comply with the requirements of the legislation, which we also see as an opportunity to enhance trust in our company by providing transparent information about our sustainability performance.

On behalf of the management of Vitesco Technologies, I would like to extend our sincere appreciation for your interest in our report.

Ingo Holstein

Chief Human Resources Officer

FOREWORDS

Thanks to our passionate team and our strong ambition to be a 'Driver of Sustainability',

we managed to further embed sustainability in our business processes in 2023. We have thus performed valuable pioneering work and paved the way for our future endeavors.

In a world that is constantly changing, we stand at a crossroads of higher responsibility. With a team guided by our values - 'Passionate, Partnering, and Pioneering' - we are on the right path. For the third year in a row, we have advanced our sustainability efforts, making progress across all aspects of our sustainability strategy, and we will keep doing so to the absolute best of our ability.

Forewords

Anja Rivera de la Cruz

Global Head of Sustainability & Security

VITESCO TECHNOLOGIES SUSTAINABILITY AGENDA

"Powering clean mobility" is our mission. As electronics champion we are leading the transi-tion of automotive powertrain suppliers towards e-mobility. By providing innovative electrification solutions, we do our part for reducing the envi-ronmental impacts of the automotive industry and promote emission-free mobility worldwide.

With technologies and measures to protect the climate, we proactively counteract global warm-ing and promote the reduction of greenhouse gas emissions in our business activities and product life cycle. We aim for climate neutrality in our production, development and adminis-tration sites, and step by step along the entire value chain.

We are committed to the efficient use of natural resources and prevent pollution such as emis-sions to soil, air, and water and reduce waste. We decrease the consumption of energy, water, raw materials and operation materials and strive for closed resource and production cycles.

"Passionate, Partnering, Pioneering". Based on these Values, we offer our employees fair and attractive working conditions with personal freedom and empowerment, opportunities for training and career, and a special focus on diversity, equity, inclusion and flexibility.

Socially and environmentally responsible action does not end at our plant gates. We are actively committed to ethical business practices, sus-tainability and human rights due diligence in our business relationships and stand for responsi-ble sourcing and considerate collaboration with our suppliers.

Vitesco Technologies Sustainability AgendaSafety and health protection are essential elements of our corporate culture. We under-take preventative measures, eliminate hazards, reduce risks and protect all persons in our com-pany from accidents and work-related illnesses. We actively foster the health of our employees and conduct operational support emergency management to avoid damage to people, asset, and the environment.

Ethics, integrity and fair business practices form the foundation of our corporate govern-ance. With our global compliance organization, we ensure compliance with the law and internal policies, detect risks and prevent violations. This includes measures to combat corruption and bribery in accordance with industry leading standards.

VITESCO TECHNOLOGIES SUSTAINABILITY SCORECARD

14.2 11.9

Share of business with electric and electrified solutions in Group revenues in %

Target: Play a leading role in the transformation of powertrain technologies towards electrifica-tion and emission-free mobility

27.0 18.1

Electrification investments per total invest-ments in %

Target: Increasing share of electrification investments in business with electric and elec-trified solutions

94.2 91.9

Climate neutrality rate of total own greenhouse gas emissions in %

Target: Reduction of absolute scope 1 and 2 greenhouse gas emissions by 100 % by 2030 from a 2019 base year

100.0 100.0

Share of external electricity procurement from renewable energies in %

Target: Since 2020: ensure 100 % purchased electricity from renewable energy sources, including power purchase agreements (PPAs) and the purchase of energy attribute certifi-cates (EACs)

VITESCO TECHNOLOGIES SUSTAINABILITY SCORECARD

93.1 93.5

Certifications for environmental management systems (ISO 14001), employee coverage (as of Dec. 31) in %

Target: Increase and maintain the proportion of employees covered by certifications for envi-ronmental management systems (ISO 14001) to over 95 % by 2030

91.8 85.7

Certifications for energy management systems (ISO 50001), employee coverage (as of Dec. 31) in %

Target: Increase and maintain the proportion of employees covered by certifications for energy management systems (ISO 50001) to over 95 % by 2030

95.2 94.6

Waste recovery quota in %Target: Increase and maintain the waste recovery quota, defined as proportion of waste that has been recycled or sent for material recycling, waste-to-energy technologies or other use, to 95 % by 2030

17.0 15.4

Share of women in management positions (executives and senior executives; as of Dec. 31) in %

Target: Raise share of women in management positions (executive and senior executive)

to 21 % by 2026

30

24

Employee Net Promoter Score, eNPSTarget: Increase the Employee Net Promoter Score as an indicator of employee satisfaction to a value of 25 by 2026

VITESCO TECHNOLOGIES SUSTAINABILITY SCORECARD

98.3 92.8

Share of strategic suppliers covered by Busi-ness Partner Code of Conduct (as of Dec. 31) in %

Target: Increase and maintain the percentage of strategic suppliers covered by the Business Partner Code of Conduct to 100 % by 2023

55.8 27.8

Share of high-risk production material suppliers which conducted a self-assessment in %Target: Increase and maintain the percentage of high-risk production material suppliers which conducted a self-assessment to 50 % by end of 2023

92.0 91.5

Certifications for occupational health and safety management systems (ISO 45001), employee coverage (as of Dec. 31) in %

Target: Increase and maintain percentage of employees covered by certifications for occu-pational health and safety management sys-tems (ISO 45001) to over 95 % by 2030

1.4

1.7

Accident rate (number of accidents per million hours worked)

Target: Reduce accident rate to 1.4 by 2027

10