Supply Chain

Introduction

Autoneum’s global supply chain plays a pivotal role in ensuring that our products are produced responsibly, sustainably, and in line with the expectations of customers, communities, and regulators. Autoneum supplies automobile manufacturers around the world with components for the interior floor, underbody, and engine bay.

We are active in 25 countries, creating substantial demand in direct spend (materials that are directly incorporated in a product) and indirect spend (goods and services supporting the production process, such as machinery, energy, and travel services). Our total procurement spend in 2025 amounted to CHF 1’475 million.

Autoneum currently works with around 1’052 direct and around 11’000 indirect spend suppliers. Within the direct spend category, we source materials from a total of 57 direct material families. Of these, we have identified ten global material families that are of strategic importance as they contain materials that are used by most of our operations globally. These include aluminum, yarn, mixed fibers, plastics, reclaimed cotton, and polyester, among others.

We see responsible procurement as essential for reducing environmental impacts and safeguarding human rights, as well as for supporting fair working conditions, protecting local communities, and ensuring safe end products. By embedding sustainability into sourcing practices, Autoneum can mitigate risks such as environmental harm, human rights violations, forced or child labor–any of which could lead to legal consequences, operational disruptions, and reputational damage. At the same time, Autoneum’s responsible procurement practices can unlock opportunities, such as encouraging the use of more sustainable materials within the automotive industry, increasing operational efficiency (i.e., higher product quality and shorter lead times), ensuring the safety of end customers, and supporting local communities through investment and the creation of jobs.

Through our Level Up strategy, introduced in 2024, we aim to engage with our suppliers in each Business Group on further sustainability improvements. For example, advancing Scope 3 emissions‑reduction initiatives, implementing financial incentives for our Business Groups linked with Scope 3 emissions reductions, and obtaining commitments from high‑emitting suppliers to lower their carbon footprint, thereby reinforcing responsible procurement as a driver of future competitiveness and sustainability.

Management Approach and Policies

Internal Policies

We are aware of the potential ESG risks within the automotive supply chain, and we are committed to ensuring that suppliers comply with environmental and social regulations worldwide through various measures. In terms of environmental risks, emissions from suppliers, especially those engaged in mining activities (e.g., bauxite for aluminum, calcium carbonate) and the chemical sectors, can affect the communities in which the supplier operates. Materials produced by our suppliers with chemical or textile processing can carry certain risks of pollution and require specific waste treatment methods. In addition, there needs to be a focus on energy management for materials where production is energy-intensive (see the Climate Change Mitigation Material Topic section for more information). Finally, we buy materials from labor-intensive industries and from suppliers located in regions where there may be a high risk of environmental and social impacts.

Human rights and working conditions are an area of legislative focus across the globe. New legislations in recent years, such as Germany’s Act on Corporate Due Diligence Obligations in Supply Chains and the Uyghur Forced Labor Prevention Act in the USA, ensure human rights protection throughout the supply chain.

We understand that any event where suppliers use child or forced labor or fail to respect land rights can result in significant repercussions for our organization. These may include legal and regulatory penalties, interruptions to operations, and damage to Autoneum’s reputation, which could impact our ability to attract and retain employees.

Suppliers must adhere to our Code of Conduct for Suppliers, which is aligned with the latest ESG regulations and automotive industry standards. New suppliers must agree to the terms of use, a confidentiality agreement, and Autoneum’s Code of Conduct for Suppliers when signing up for the portal.

The Code of Conduct for Suppliers defines key requirements in the following areas:

How Suppliers Can Contribute to Climate Protection

In our ESG Directive, we confirm our commitment to complying with the following international standards:

Governance

The Responsible Supply Chain workstream within the Corporate Responsibility Steering Committee is tasked with monitoring the performance, risks, and opportunities for supply chain topics, while the Group Executive Board oversees the supplier ESG program.

Autoneum’s purchasing organization operates within our four Business Groups and Corporate. We differentiate between local, regional, and global suppliers based on the locations they serve. The Global Procurement Leader organization is responsible for analyzing global supply chain risks, implementing standards and specifications, improving transparency, and forecasting market requirements. As part of the commitments in our sustainability strategy, we annually evaluate our procurement management framework against the ISO 20400 sustainable procurement standard.

Risks and issues related to conflict materials and child labor are addressed in the Audit Committee of the Board of Directors, while human rights topics are referred to the Board of Directors’ Nomination Committee and Compensation Committee.

Long-Term Relationships With Suppliers

We work closely with selected suppliers to meet customer needs and stay competitive in the long term. Thanks to our top-tier suppliers, we can deliver high standards and top-quality products. Autoneum typically maintains business relationships with most suppliers for periods ranging from at least five years to over 15 years.

We believe long-term relationships with suppliers help to develop a more effective supply chain that can have a positive impact on costs and customer service. These relationships are also necessary to realize our ambitions in terms of sustainability, as it takes many years to implement requirements such as switching to green energy, investing in recycling facilities, or developing strategies to increase recycling.

Supplier Quality Assessment

Autoneum conducts a Supplier Quality Assessment (SQA), an internal audit mechanism that assesses numerous factors related to quality, health and safety, and the environment for its supply chain.

Supplier ESG Due Diligence

Our 3rd-Party Due Diligence Manual explains how we assess a supplier’s environmental, social, legal, and compliance/governance aspects for both current and future business relationships. This process serves to assess and mitigate risks related to suppliers’ business activities (i.e., due diligence).

The manual is accessible to all suppliers on Autoneum’s website. We plan to distribute the manual to suppliers of the Jiangsu Huanyu  Group and the Chengdu Yiqi-Sihuan Group companies in 2026, and all direct material and tooling suppliers of the Jiangsu Huanyu Group and Chendu Yiqi-Sihuan will then also be included in Autoneum’s supplier ESG due diligence program.

Autoneum’s purchasing function manages the risk screening process for selected suppliers on environmental, social, legal, and compliance/governance aspects through a coordinator from each Business Group. Based on the result, such suppliers are included in the IntegrityNext platform (“Third-Party Risk Screening”).

A Third-Party Risk Screening is implemented for all suppliers of Autoneum according to risk criteria, except for direct material suppliers, who are screened through the IntegrityNext platform on a regular basis. Purchasing screens all other suppliers from each BG based on the following risk criteria: pollution of air, water, and soil and corresponding emissions due to suppliers’ manufacturing processes; environmental logistics in relation to the supply chain; risks in the supply chain related to human rights and working conditions; corruption and bribery risks associated with supply chains; annual spend category and/or strategic importance.

For each criterion, a risk prioritization factor is used to evaluate the impact and probability of the risk. The screening is run at least annually based on the risk evaluation and in line with OEM and regional legal requirements, or ad hoc in case of changes, e.g., new products, plants, etc. Self-declarations may also be required with regard to specific risk areas from suppliers, for example child labor.

The third-party ESG due diligence invitation, response, and validation process is as follows:

Suppliers are required to answer the third-party questionnaires within a communicated deadline. Autoneum receives a detailed analysis of the results. Suppliers with identified gaps need to deliver a corrective action plan (CAP).

The supplier then needs to update the questionnaire after implementing the corrective actions. For selected suppliers, IntegrityNext will verify the update and attachments for accuracy, completeness, and validity. Audits at the selected (high risk) supplier’s premises or other business locations may be necessary to verify the accuracy of the questionnaire, fulfillment of the CAP, and/or compliance with identified gaps.

If issues are flagged with the supplier ESG assessments, Autoneum’s Responsible Supply Chain team and corresponding commodity lead buyers will discuss improvements in the required ESG areas with the supplier. This is an ongoing process, as suppliers, as well as the industry, are in a learning phase when it comes to ESG.

Autoneum may require suppliers to participate in general ESG training or specialized courses that address identified gaps. If a supplier does not cooperate, does not meet the agreed CAP, or commits serious violations, Autoneum may end its relationship with that supplier.

Our purchasing practices toward suppliers are reviewed to ensure the alignment of Autoneum’s practices with our own Supplier Code of Conduct to avoid potential conflicts with ESG requirements. Suppliers may be excluded from contracts if they cannot achieve minimum ESG requirements within a set time frame. Suppliers demonstrating a better ESG performance are preferred in our supplier selection and the awarding of contracts. Additionally, we provide training for Autoneum’s buyers and/or internal stakeholders on their roles in the supplier ESG programs.

In response to new regulatory requirements, particularly those in the EU and USA, Autoneum plans to evaluate alternative solutions in 2026 to strengthen our supplier risk management program. These measures may involve seeking support from external service providers for on-site ESG audits and assessments, as well as improving CAP management and supplier engagement.

Material Compliance

Autoneum requires suppliers to comply with all regulations when it comes to materials. This process is primarily conducted through registration in the International Material Data System (IMDS), the automotive industry’s designated material data system, which includes declarations for all materials that use conflict minerals.

Autoneum provides the necessary material composition information to all OEMs through the IMDS system. In addition, substances of very high concern (SVHC) are reported to the European Union’s Substances of Concern In Products (SCIP) database via the same IMDS platform. We use safety data sheets (SDS) for chemicals that we purchase, and we actively monitor the regulation of per- and polyfluoroalkyl substances (PFAS), analyzing our exposure to these chemicals, and exploring potential replacements.

Autoneum requires periodic verification of material compliance with legal regulatory frameworks, such as REACH54 and GADSL55, and those outlined by automobile manufacturers, using the best-practice compliance process management (CPM) tool.  This tool also enables Autoneum to maintain a comprehensive database of these requirements and assists our organization and suppliers in monitoring any changes on a single platform.

For all functions involved in defining the materials used in Autoneum products, an e-learning program is available that covers significant material compliance topics.

Conflict Materials

We closely monitor conflict minerals such as gold and ores used for tin, tantalum, and tungsten, which are often tied to ongoing armed conflict in the Democratic Republic of the Congo (DRC). By tracking where these minerals come from and how they are used, we work to prevent human and labor rights abuses and avoid funding armed conflicts. By encouraging our suppliers to avoid conflict materials and uphold human rights throughout the supply chain, we also protect our reputation and meet our customers’ expectations.

Autoneum does not purchase conflict minerals directly. Some suppliers, however, may include these minerals in additives or catalysts used to produce materials that Autoneum acquires. As a result, the amount of conflict minerals in materials used by Autoneum is very low. We rely on the IMDS to verify and record the materials sourced from suppliers.

Within the IMDS system, suppliers are required to declare to Autoneum if their products contain conflict minerals and cobalt. Autoneum’s Material Compliance team within the R&T function lead the process in collaboration with our purchasing function and a third-party service provider to obtain conflict mineral and cobalt reports from all suppliers who declared such content in the IMDS.

Additionally, Autoneum ensures collaboration exclusively with suppliers that source minerals from mines and smelters verified through a responsible minerals sourcing validation program, such as the Responsible Minerals Assurance Process (RMAP). For operations in the USA, all purchased materials must comply with the Dodd-Frank Act, which mandates that companies manufacturing in the USA ensure their raw materials are free from conflict minerals.

We require suppliers who declare conflict mineral content in the IMDS system to annually audit their mineral supply chains. They are required to disclose whether these minerals originate from the DRC or neighboring countries. This ensures compliance with existing conflict mineral requirements in USA and with EU regulations. Suppliers must use the Conflict Mineral Reporting Template (CMRT), as well as the Extended Mineral Reporting Template (EMRT) for cobalt, developed by the Responsible Minerals Initiative (RMI), to report mineral origins, and smelters and refiners used.

Every year, we submit a company-level conflict mineral reporting template (CMRT) to each impacted OEM in line with their individual reporting deadlines. A separate cobalt report is completed annually and reported within NQC together with the company-level CMRT.

Human Rights

We are committed to proactively defining and implementing measures within our sphere of influence to prevent human rights violations within our global operations and value chain. In the event that any incidents do arise, we will take immediate measures to address them.

Through these measures, we pursue our ambitious objectives regarding social and economic responsibility while maintaining strict adherence to all applicable legal requirements. Furthermore, several of our affiliated companies are governed by local legislation specifically designed to safeguard human rights and environmental standards.

Autoneum strictly prohibits all forms of forced and child labor throughout both our operations and those of our suppliers, as outlined in the Autoneum Code of Conduct and Autoneum Code of Conduct for Suppliers. Autoneum asks its suppliers to prohibit all forms of child labor within their operations or supply chain as stipulated by the International Labor Organization’s conventions on Minimum Age and the Worst Forms of Child Labour. Protecting children from harm is vital. They should not be denied education or their childhood, nor placed in situations that could cause mental, physical, social, or moral harm through forced labor.

All Autoneum employees are responsible for preventing, detecting, and reporting violations. Anyone can report human rights concerns related to our organization or supply chain to Autoneum’s compliance organization or via the Speak Up Line.

We see compliance with human and labor rights regulations among our suppliers through our Code of Conduct for Suppliers, the completion of a questionnaire on our third-party risk screening platform, and/or a child labor self-declaration for suppliers. Some suppliers who have their own child labor policies/declarations, mainly within the EU, have shared them with us instead of signing Autoneum’s self-declaration. In addition, we carry out media screening for ESG risks with a third-party provider.

Any misconduct in the supply chain is recorded and evaluated in the supplier management system and, depending on its severity, can have negative consequences for the company concerned. Human rights-related matters brought to the attention of Autoneum’s Legal & Compliance function or the Human Rights Officer are assessed individually, with corrective actions implemented and recorded through the Speak Up Line, the third-party risk screening platform, or with Human Resources, as may be adequate.

In 2024, Autoneum Holding AG appointed a member of the Legal & Compliance function as Human Rights Officer for the Autoneum Group. The Human Rights Officer, with the support of the Group Manager Responsible Supply Chain, conducts annual risk analyses in order to identify, assess, and address human rights-related risks, if possible at an early stage, and to initiate countermeasures within the organization, where necessary.

If the Human Rights Officer anticipates a significantly changed or significantly expanded risk situation in the supply chain, a risk analysis will be carried out on an ad hoc basis. The results of the risk analysis are reported internally to the Compliance Council. Furthermore, identified risks are communicated to the Head Purchasing of the respective Business Group and the management of the relevant affiliated company.

New Operational Targets

In 2025, the strategic and operational targets for the Supply Chain Important Topic came to a conclusion. In response, we have introduced the following operational targets:

Key 2025 Actions, Progress, and KPIs

Compliance With Germany’s Supply Chain Act

To comply with Germany’s Act on Corporate Due Diligence Obligations in Supply Chains (LkSG), Autoneum retained a third-party service provider, IntegrityNext, in 2024 to perform the necessary due diligence for Autoneum Germany GmbH and its supply chain on a “software as a service” basis. This approach enables effective risk identification, management, prioritization, and oversight of both preventive and corrective mitigation actions. Autoneum used IntegrityNext in 2025 for this purpose, and will continue to do so in 2026.

The IntegrityNext platform is a comprehensive software solution designed to promote sustainable supply chain compliance and positive impact across key areas. It helps companies meet global due diligence requirements, including the Corporate Sustainability Due Diligence Directive (CSDDD), German Supply Chain Act (LkSG), Duty of Vigilance (France), Norwegian Transparency Act (NTA), and the Swiss Supply Chain Act.

During 2025, we screened 1’593 suppliers worldwide (all direct material suppliers globally, all tooling suppliers, and indirect material suppliers as relevant for German Supply Chain Act) for ESG criteria via the IntegrityNext platform.  The ESG criteria covers among others anti-bribery, environmental protection, human rights & labor, health & safety, and supply chain responsibility.

1’185 suppliers completed the requested assessments on the platform. In 2024, Autoneum invited 130 direct material suppliers from identified ESG risk material categories, therefore 1’463 suppliers were new to these ESG assessments in 2025.

Regular reminders were sent to the suppliers who did not participate in the requested assessments. These suppliers will be included in the 2026 ESG due diligence campaign together with the “new” 2026 suppliers from all regions.

According to the assessment results validated by the IntegrityNext platform, 292 suppliers were classified as “red” risk, and another 314 suppliers were classified as “yellow” risk for ESG. For LkSG, all “red” suppliers were prioritized, and preventive actions have been started for all registered suppliers within this category. For direct material and tool suppliers with ESG risks, Autoneum set a spending threshold (above CHF 10’000 annually) to identify the priority suppliers (48) where we would launch a call-to-action from the platform. These actions include uploading valid ISO certificates or policies, completing the missing assessment, and providing an action plan to address missing answers for critical topics (such as anti-bribery or environmental pollution).

We further updated our Declaration on the Human Rights Strategy of the Autoneum Group in 2025 and republished it on our website. The appointed Human Rights Officer (TÜV certified) continues to oversee the implementation of Autoneum’s human rights strategy within the Autoneum Group as well as within Autoneum Germany GmbH in particular, including regular reports to Autoneum’s Compliance Council and annual reports to Autoneum Germany GmbH’s management on the status of the implementation. We are implementing preventive actions for selected, prioritized suppliers classified as “red” or “yellow” under the LkSG requirements, adapted to their identified risk. One corrective action was implemented in Autoneum Germany’s own organization in 2025 under the LkSG.

In 2025, we revised our supplier ESG due diligence process to comply with new regulatory standards including the LkSG. Previously, this process was limited to suppliers identified within specific risk categories. As of 2025, our due diligence now encompasses all direct materials and tooling suppliers worldwide through the adoption of the IntegrityNext platform. Second-tier suppliers are not screened with the tool. We did not identify any significant actual and potential negative environmental impacts during 2025. For compliance with the LkSG in particular, we further screened Autoneum Germany GmbH's suppliers falling within the indirect material category.

European Deforestation Regulation

We are tracking updates concerning the European Deforestation Regulation (EUDR) and its scope of application. We conducted an impact analysis based on detailed IMDS searches as well as on a tariff code analysis in our Enterprise Resource Planning (ERP) system. As a result, detailed questionnaires were sent out to identified suppliers to assess EUDR application in 2025. Autoneum further engaged a third-party platform for the onboarding of suppliers and the recording of EUDR relevant documentation, such as due diligence statements and geo-data. Furthermore, we regularly respond to OEM requests regarding compliance with EUDR requirements.

Human Rights

In 2025, Autoneum published an updated Declaration on the Human Rights Strategy of the Autoneum Group. This declaration supplements the existing corporate policies on human rights, including the Code of Conduct, the Code of Conduct for Suppliers, the ESG Directive, and the Corporate Responsibility Report. This declaration was distributed to all Autoneum employees with an email address to raise awareness, along with a microlearning module on human and labor rights.

No instances of child labor or forced labor were identified within Autoneum’s own operations or its supply chain in 2025. Consequently, no remedial measures were required. Based on an abstract assessment of industry and country risk as well as individual assessments on the supply chain due diligence platform that Autoneum uses, no significant risk was identified for incidents of child, forced, or compulsory labor within Autoneum operations in 2025.

To date, Autoneum’s Child Labor Self-Declaration has been signed by around 65% of Autoneum’s direct, tooling and capex suppliers globally.