Autoneum is reporting on climate-related risks and opportunities in accordance with the Task Force on Climate-Related Financial Disclosure (TCFD) guidelines for the second time. The report on governance, strategy, risk management, key metrics, and targets indicates how Autoneum identifies and deals with physical and transitional risks and opportunities that are caused by climate change and may have a financial impact on our organization.
Ultimate responsibility for Autoneum’s climate strategy lies with the Board of Directors. The Board reviews, challenges, and approves the climate-related risks and opportunities, the sustainability strategy, and the definition of adaptation and mitigation measures. Therefore, the Board oversees Autoneum’s progress in implementing the climate transition plan and reaching our climate targets. In addition, the Board approves the Corporate Responsibility Report, which includes climate-related reporting.
The responsibility for these climate-related duties and responsibilities is delegated to the Board of Directors’ StSC. The committee meets at least twice a year and prepares an executive summary of the progress together with the management. In 2025, climate-related topics were discussed by the Strategy and Sustainability Committee at each meeting (three in 2025). Additionally, the ESG update is a standard agenda item at every regular Board of Directors (BoD) meeting. In 2025, there were five regular BoD meetings. For each meeting, written documentation, including CR topics, was provided, and the Group General Counsel & Head Compliance delivered the Compliance/CR update, which also includes climate-related topics, such as Autoneum’s greenhouse gas emissions targets and performance, the strategic opportunities and risks linked to climate change, the materiality assessment, and ESG scoring. In addition, Autoneum maintains a risk management system and procedures for identifying, reporting, and managing risks. A dedicated section addresses compliance and ESG risks, including climate change. An aggregated review of all identified risks, including extreme weather events and measures to address them is performed by the Risk Council, consisting of the Business Group Controllers and the Group Function Heads. The review results are summarized in the Risk Report and submitted twice a year to the Board of Directors and the Group Executive Board. Specific climate-related risks are reviewed and consolidated by the Head of Strategy and Sustainability and presented in the StSC.
The Audit Committee ensures overall supervision of Risk Management, and the Board of Directors takes note of the Risk Report and audit-related topics for the Corporate Responsibility Report. The Board of Directors delegates operational business management–including climate-related issues–to the CEO. He leads the Corporate Responsibility Steering Committee, which consists of the Group Executive Board and the Corporate Responsibility Organization. It meets four times a year to oversee and manage the entire Corporate Responsibility Organization. The Committee oversees the progress of the Level Up strategic pillar “Be the sustainability benchmark.” It also monitors the performance of ESG topics, continuously reviews potential risks in the area of Corporate Responsibility, and defines important measures. Each ESG topic, including climate, is led by a workstream leader, who consolidates qualitative and quantitative information and reports to the Committee. In 2025, the Corporate Responsibility Steering Committee focused mainly, but not exclusively, on the reduction of emissions toward targets validated by the Science Based Targets Initiative (SBTi), in addition to initiatives to reduce energy, waste, and water, as well as sustainability ratings and new reporting obligations.
The implementation of the sustainability strategy and its corresponding measures is primarily overseen by the Corporate Responsibility Organization, which is managed by the Corporate Responsibility Steering Committee. The Corporate Responsibility Organization comprises members from various functions, including R&T, Strategy and Sustainability, Operations, Purchasing, EHS, HR, Finance, Legal & Compliance, and Communications. The members collaborate at both global and regional levels to systematically implement the sustainability initiatives, aligning them with Autoneum’s long-term vision across five dimensions of Corporate Responsibility: ESG Management, Planet, People, Business Ethics, and Responsible Supply Chain. Each of the five workstreams is managed by a workstream leader, with the Strategy and Sustainability function responsible for ESG Management and Planet.
Responsibility for the oversight of Autoneum’s strategic direction and sustainability initiatives lies with the Head of Strategy and Sustainability. This role involves developing and implementing strategies that align with Autoneum’s mission and vision, as well as ensuring that sustainability is integrated into all aspects of the business. It includes:
In 2024, Autoneum identified climate-related risks and opportunities along its entire value chain. According to the TCFD, a distinction is made between climate-related physical risks and transition risks and opportunities. These risks and opportunities were categorized into risks that impact Autoneum in a short- (0-2 years), mid- (2-5 years), or long-term (more than 5 years) timeframe. Furthermore, Autoneum assessed the identified risks for their probability and potential financial impact, both of which were combined and categorized from low to very high financial impacts.
To better understand the future impact of the identified risks and opportunities on its business strategy, Autoneum conducted a qualitative scenario analysis. To do this, Autoneum used the Shared Socio-economic Pathways (SSP) scenarios, which are based on the Intergovernmental Panel on Climate Change (IPCC) and also take into account socio-economic development.
To assess its resilience to climate change, Autoneum considers two different scenarios: one well below 2°C, known as “Sustainability–Taking the Green Road” (SSP1-2.6), and one above 2°C, known as “Regional Rivalry–A Rocky Road” (SSP3-7.0). The goal was to assess risks for both scenarios and to assess and increase Autoneum’s resilience for both future options.
In 2025, Autoneum updated its climate risks and opportunities with stakeholders and presented the findings to the Corporate Responsibility Steering Committee for review. In October, 2025, the updated climate risks and opportunities were presented to the Board of Directors’ StSC.
Physical risks resulting from climate change can be event-driven (acute physical risks), such as floods, or can manifest as long-term shifts in climate patterns (chronic physical risks), for example persistently higher temperatures. They do not typically offer opportunities but require protective measures.
Risk | Possible Impact on Autoneum | Measures | ||||
|---|---|---|---|---|---|---|
Physical Risk, Acute | Extreme heatwaves–intensified by climate change–can significantly disrupt manufacturing operations. For Autoneum, prolonged high temperatures may reduce worker productivity, increase health and safety risks, and lead to temporary shutdowns or reduced output. | •Reduced output: Lower productivity and temporary shutdowns can lead to missed delivery deadlines and revenue loss. •Increased operating costs: Higher energy consumption for cooling and additional health and safety measures. •Labor risk: Heat stress may lead to absenteeism, reduced morale, and increased health-related incidents. •Insurance and liability exposure: Potential rise in claims related to workplace conditions and employee health. •Supply chain disruption: Heatwaves may affect logistics and upstream suppliers, compounding operational risks. •Three Autoneum sites have very high-risk exposure. An additional nine sites have high risk exposure. In both of the modeling scenarios, the situation will worsen for one site in the future. | •Facility climate resilience upgrades: Invest in cooling systems, ventilation to maintain safe working conditions during heatwaves. •Workforce protection protocols: Implement heat stress management plans, including adjusted work schedules, hydration stations, and health monitoring. •Climate risk mapping: Use climate models to identify facilities in high-risk regions and prioritize adaptation investments accordingly. •Insurance review and risk transfer: Assess coverage for climate-related disruptions and explore parametric insurance options for heatwave events. •Business continuity planning : Develop contingency plans for production rescheduling, temporary relocation, or remote operations during extreme weather events. | |||
The increasing frequency and severity of extreme weather events–such as floods, windstorms, wildfires, tornadoes, hailstorms, and other natural hazards–pose a significant threat to operational continuity. For Autoneum, such events could cause substantial damage to its production facilities and warehouses, and to those of customers and sub-suppliers. This risk is amplified in regions with aging infrastructure or limited disaster preparedness. | •Asset damage: Physical destruction of buildings, equipment, and inventory may require costly repairs or replacements. •Production downtime: Disruption of operations due to facility damage can lead to missed deliveries and contractual penalties. •Supply chain interruptions: Damage to customer or supplier facilities may delay inputs or outputs, affecting revenue and customer satisfaction. •Insurance costs: Increased premiums or reduced coverage availability in high-risk regions. •Capital expenditure: Investments needed for facility hardening, relocation, or emergency preparedness. •In August, wildfires in Spain impacted the A Rúa plant. Another plant has moderate present risk exposure, similar to A Rúa. However, both plants are located in areas close to high exposure. | •Climate risk mapping and facility assessment: Identify facilities located in high-risk zones using climate and hazard modeling tools. •Infrastructure resilience upgrades: Implement mitigation measures on specific present and future climate risks. Initial focus will be on floods, precipitation, wildfires, and earthquakes (for the identified plants). •Emergency response and business continuity planning: Develop and regularly test contingency plans for extreme weather scenarios, including evacuation, remote operations, and alternative sourcing. •Insurance optimization: Review and adjust insurance coverage to reflect evolving risk profiles and explore parametric insurance options for rapid recovery. •Supplier chain risk screening: Assess and monitor the climate resilience of key suppliers and customers, integrating risk into procurement and partnership decisions. | ||||
Physical Risk, Chronic | Climate change is contributing to long-lasting droughts, declining water quality, and increased water stress in several regions. For Autoneum, this poses a chronic physical risk to operations that depend on water—such as water jet cutting or steam generation. Facilities located in water-stressed regions may face supply restrictions, increased costs, or operational disruptions. | •Operational disruption: Limited water availability may reduce production capacity or halt water-dependent processes. •Increased operating costs: Higher costs for water sourcing, treatment, and recycling. •CAPEX: Investments may be needed for water-efficient technologies or alternative processing methods. •Regulatory risk: Local water use restrictions or environmental compliance requirements may increase administrative burden. •Reputational risk: Perceived overuse or mismanagement of water resources may affect stakeholder trust and ESG ratings. •11 Autoneum plants present high-risk exposure. | •Water risk mapping : Identify facilities located in water-stressed regions to prioritize mitigation efforts. •Water usage optimization: Implement water-efficiency project and redesign water-intensive processes to reduce dependency on external water sources. Install water-saving and recycling systems. Diversify water sources (wells, reservoirs, rainwater harvesting). | |||
Climate change is contributing to rising sea levels, increasing the risk of chronic flooding. Facilities located near vulnerable zones may face heightened exposure to flooding, erosion, and water intrusion. These impacts may disrupt operations, damage infrastructure, and increase long-term maintenance and insurance costs. | •Asset damage: Repeated flooding may degrade buildings, machinery, and storage areas, requiring costly repairs or replacements. •Operational disruption: Flooding events may halt production and delay shipments. •Insurance premiums: Increased risk exposure may lead to higher insurance costs. •CAPEX: Investments may be needed for flood defenses, facility relocation, or infrastructure upgrades. •Coastal storm surges may impact operations. According to the RDS platform, four sites have very high present risk exposure. One site has high present risk exposure. •Three sites have a very high pluvial flood risk exposure. One site has a very high fluvial flood risk exposure. Additionally, eight plants have a high pluvial flood risk exposure. One plant has a high fluvial flood exposure. | •Site risk assessment : Conduct geospatial and climate modeling to identify facilities at highest risk of flooding. •Infrastructure resilience upgrades : Invest in flood barriers, elevated construction, and water-resistant materials to protect vulnerable assets. •Business continuity planning : Develop contingency plans for production relocation, logistics rerouting, and emergency workforce protocols. •Insurance and financial hedging : Review insurance coverage and explore climate risk hedging instruments to manage financial exposure. •Facility relocation strategy: Evaluate long-term feasibility of relocating critical operations away from high-risk zones. |
Autoneum’s assessment showed that it faces some physical risks that might have financial implications, such as direct damage to assets. The main risks identified are extreme weather events and rising sea levels, which could affect our sites as well as those of our suppliers. However, the assessment showed that the financial impact would still be moderate. Autoneum regularly monitors the risks of extreme weather events for our own operations with Swiss Re’s Risk Data Service platform. Although some risks already occur today, they would worsen in the above 2°C scenario. In this scenario, supply chain and operational disruptions would be prevalent, underscoring the importance of introducing protective measures and contributing to a lower-carbon economy. The transition to a lower-carbon economy may require policy, legal, technological, or market changes to address mitigation and adaptation requirements related to climate change. Depending on the nature and speed of these changes, transition risks may pose varying levels of financial risks to organizations.
Risk | Possible Impact on Autoneum | Measures | ||||
|---|---|---|---|---|---|---|
Transition Risk, Market | The shift toward electrification is reshaping OEM market dynamics. Traditional customers with slower EV adoption may lose market share to more agile competitors. For Autoneum, this creates risk if our business is concentrated among OEMs that lag in electrification. | •Revenue decline: Decreased sales volumes from affected customer due to their loss of market share. •Strategic misalignment: Miss opportunities to align with fast-growing EV-focused OEMs, impacting competitiveness. | •Strategic customer mapping: OEM electrification strategies and market trajectories. •Customer portfolio: Maintain a broad and diversified customer portfolio to reduce the risk. •Sales strategy: Gain market share with Chinese OEMs, which have competitive and technology advantages on BEVs. | |||
The shift toward decarbonized mobility in the automotive sector is accelerating the obsolescence of products designed for internal combustion engines (ICE) or conventional materials and processes. These products/processes may face obsolescence risks as OEMs increasingly prioritize compatibility with BEVs, circular economy principles, and low carbon footprints. | •Revenue decline: Reduced demand for legacy products that are not compatible with EV platforms or sustainability criteria. Loss of RFQs. •Stranded assets: Existing manufacturing lines may become obsolete, requiring write-offs. •Margin pressure: Increased R&D and CAPEX into new technologies and production lines. | •Strategic partnerships: Engage and collaborate with OEMs to anticipate evolving needs. •Innovation investment: Accelerate R&D in BEV-specific products, low carbon material and processes, and circular economy models. •Product portfolio diversification: Shift toward products and technologies optimized for BEV, reducing reliance on ICE-related components. •Technology monitoring and benchmarking: Continuously monitor industry trends and competitors’ innovations to identify substitution risks early and adapt accordingly. | ||||
Starting in 2026, the EU will implement the Carbon Border Adjustment Mechanism (CBAM) for key materials including aluminum. This regulation imposes a carbon tax on imported aluminum based on its embedded emissions. For Autoneum, this could significantly impact procurement costs and supply chain strategies, especially if sourcing aluminum from regions with high carbon intensity. | •Higher prices for imported aluminum due to carbon levies. (The European Commission has not yet declared the amount or percentage). •Reduced competitiveness of non-EU suppliers with high emission profiles. •Complexity in tracking and reporting embedded emissions in imported materials. | •Autoneum’s aluminum global suppliers are already working on reducing emissions with accelerated plans as the majority of their production is exported to the EU. •Tax status will be followed up and the impact will have to be compensated by the customer. | ||||
Transition Risk, Policy and Legal | The accelerating pace of climate-related regulation poses a significant transition risk. Regulatory changes may require new reporting systems, processes, expertise, and legal reviews, increasing complexity and cost. | •Compliance costs: Increased administrative burden, including working with digital reporting tools, third-party audits, and legal reviews. •Legal risk: Non-compliance could result in fines, litigation, or reputational damage. •Market access risk: Failure to meet regional regulations may limit access to key markets (e.g., EU, USA, China). | •Regulatory horizon scanning: Establish internal or external monitoring systems to track upcoming regulations across key markets and anticipate impact. •Digital reporting tools: Invest in ESG data platforms to streamline reporting, improve accuracy, and reduce manual effort. •Cross-functional legal and sustainability teams: Create dedicated teams to interpret regulations, coordinate implementation, and ensure timely compliance. | |||
Missed environmental legislation leading to reputational and financial impact. | •Fines or sanctions for non-compliance with new environmental laws. •Criticism from media, activist groups, and stakeholders for perceived negligence. •OEMs may reconsider partnerships due to compliance failures. •Sudden need to adapt processes or products to meet overlooked requirements. | •Constant tracking of environmental legislation globally by both legal and sustainability team to stay ahead of changes. (Automated alerts, newsletters, seminars, external counsel, etc.) | ||||
Transition Risk, Technology | Achieving Scope 1 and 2 emissions neutrality requires significant technological transformation across manufacturing operations, energy sourcing, and facility management. This includes replacing fossil fuel-based energy systems, upgrading production lines, and integrating energy-efficient technologies. The transition poses financial and operational risks, especially in legacy plants and high-emission processes. | •CAPEX: High upfront investment in renewable energy systems, electrification of processes, and energy-efficient equipment. •OPEX for renewable energy: Transitioning to green electricity or biogas may increase energy costs. | •Energy efficiency: Minimize overall energy consumption through process optimization and energy-saving technologies in all plants. •Energy transition roadmap: Develop a phased plan to replace fossil fuels with renewable energy sources across all facilities with cost-benefit analysis. •Onsite renewable generation: Install solar panels or other renewable infrastructure at manufacturing sites to reduce reliance on external energy providers and to lock in stable pricing (PPA). •Public financing: Leverage external funding, grants, or green financing options to adopt green energy with acceptable business case. •Customer onboarding: Share premium cost with customer in RFQ. | |||
As circular economy principles and waste reduction targets become central to sustainability strategies and regulations, the inability to recycle certain materials, such as glass fiber-based products, poses a significant transition risk. These materials often lack viable recycling pathways, leading to increased landfill use and regulatory pressure. | •Operational inefficiencies: Increased waste disposal costs and environmental footprint. •Customer loss: Pressure from customers and investors to phase out non-recyclable materials. | •Material innovation: Invest in R&D to develop recyclable alternatives to currently non-recyclable materials. •Waste auditing and transparency: Implement robust waste tracking systems and disclose recycling performance in ESG reports to build stakeholder trust. | ||||
In response to the transition toward a low-carbon economy, Autoneum is investing in new technologies, such as new materials and electrification-compatible products. However, there is a risk that these investments may not yield the expected performance, market adoption, or cost efficiency. Technological uncertainty, shifting OEM requirements and regulatory changes can render innovations commercially unviable or obsolete. | •Capital losses: Costs in R&T, equipment, or product development that fail to deliver returns. •Opportunity cost: Resources allocated to unsuccessful technologies may divert attention from more viable innovations. | •Customer co-development: Collaborate with OEMs to ensure relevance and adoption of new solutions. •Stage-gate investment approach: Implement phased funding with clear performance milestones to limit exposure and enable early exit from underperforming projects. •Technology benchmarking: Continuously monitor emerging technologies and competitor strategies to validate investment decisions. | ||||
Transition Risk, Reputation | As climate-related disclosures and net-zero commitments become central to stakeholder expectations, any gap between stated climate goals (e.g., Scope 1 and 2 neutrality, science-based targets), and actual implementation progress poses a reputational risk. | •Loss of customer confidence: OEMs may deprioritize suppliers that fail to meet climate-related expectations or show weak implementation. •Investor pressure: ESG-focused investors may downgrade ratings or divest due to perceived greenwashing or lack of credibility. •Brand damage: NGOs, media, and civil society may highlight gaps, leading to reputational harm and stakeholder distrust. •Human resources: Internal morale and talent retention may suffer if climate goals are not backed by visible action. | •Transparent climate reporting: Ensure disclosures reflect both progress and challenges. Use third-party assurance to validate emissions data and implementation status. •Implementation roadmaps: Translate high-level commitments into detailed, time-bound action plans with measurable milestones and resource allocation. •Climate governance and accountability: Establish clear ownership of climate targets across departments, with board-level oversight and integration into performance incentives. |
The transition to a lower-emission world could pose risks for Autoneum. This is mainly because technology or markets may not move fast enough. There are also some reputational risks, the impact of which is difficult to assess.
There is a risk that emissions regulation and the electrification of light and commercial vehicles required to mitigate climate change could have a disruptive effect on the automotive market. Some of Autoneum’s customers could be negatively affected. For example, they may struggle to adapt quickly to the transition requirements, particularly in the areas of emissions and electrification. This could result in a loss of market share if customers fail to meet the evolving standards and could consequently impact Autoneum’s business with these customers. In addition, although the vast majority of Autoneum products (>90%) fit all types of vehicles regardless of their powertrain, some products in the group’s portfolio, such as heat shields, are only used for combustion engines and will be affected by electrification. Autoneum plans to mitigate this impact by gaining market share with customers who are advancing in their sustainability goals and electrification, such as certain Chinese Original Equipment Manufacturers (OEMs). In parallel, Autoneum is developing specific products for electric vehicles, such as battery impact protection plants, flame shields, electric motor treatments and frunks (front storage).
Failure to comply with environmental regulations and varying regional policies can result in operational inefficiencies or fines. By implementing automated alerts and regular updates on regulatory changes, Autoneum strives to stay ahead of legislative developments. We also monitor specific local and regional regulation strategies to ensure compliance.
The sourcing of recycled materials is essential for Autoneum to ensure the development of monomaterial polyester solutions. In the mid-term, Autoneum does not foresee major sourcing issues. However, we will continue to monitor the market and we are developing various alternative sources of recycled materials, including reusing our own production waste.
As light vehicles contribute to global greenhouse gas emissions, suppliers like Autoneum may face reputational risks from participating in a CO2 -intensive industry. Failure to meet commitments such as eliminating fossil fuels within our supply chain or reducing waste also poses reputational risks. These can include the potential loss of business from sustainability-focused customers, reduced investor demand for Autoneum shares, and challenges in attracting talent. However, with our sustainability focus and measures to reduce emissions, Autoneum is well positioned to minimize these risks.
On the other hand, when Autoneum implements effective mitigation measures and successfully adapts its business model and strategy to climate change, opportunities may arise and create competitive advantages. The development of new products for electric vehicles represents an opportunity to generate significant additional revenues. This is in line with our strategy in a scenario where the global temperature increase is limited to below 2°C. In addition, Autoneum sees business opportunities to develop sales with monomaterial products and high recycled content, enabling the transition to a circular economy. Products in our portfolio include 100% polyester carpets, underbody shields, and trunk trims. It will also enable efficient recycling of production and end-of-life vehicle waste, and improve cost competitiveness, though we expect the financial impact will be limited in the long term.
Sourcing cheaper recycled materials and recycling production cut-offs provide savings opportunities, while also contributing to cost efficiency. These measures also support Autoneum’s sustainability initiatives, including the zero waste vision.
Possible Impact on Autoneum | Measures | |||||
|---|---|---|---|---|---|---|
Transition Opportunity, Products | The growth of the EV market presents an opportunity to innovate and develop new products tailored to the unique needs of EV platforms. | •Revenue growth: Increased demand for EV-specific components can drive new revenue streams. •Risk mitigation: Diversification of product portfolio reduces dependency on ICE-related components. | •Innovation and R&T: Investment in R&T for EV-specific materials and components, e.g., New Mobility team and new R&T resources in China. •Customer engagement: Collaboration with OEMs on co-development of next-generation solutions. Align roadmaps with OEM decarbonization and circularity targets. | |||
As OEMs intensify their focus on decarbonization, Autoneum has a strategic opportunity to develop products and bill of materials (BOMs) that meet low-carbon criteria. | •Revenue growth: Capture new business opportunities from OEMs prioritizing low-carbon sourcing. •Valuation impact: Support decarbonization strategy and improve investor confidence. | •Product innovation: Develop low-carbon variants of existing products using carbon footprint analysis. Increase use of recycled and low emissions material. Design BOM optimized for end-of-life recyclability •Customer collaboration: Collaborate with OEMs to tailor solutions to their decarbonization roadmaps. •Operational integration: Minimize energy and resource use in manufacturing. | ||||
Transition Opportunity, Resource Efficiency | Recycling production cut-offs presents a valuable opportunity to reduce waste disposal volumes, lower raw material costs, and decrease associated emissions. | •Cost savings: Reduced raw material procurement costs through internal reuse. Lower waste management and disposal expenses. •Emission reduction: Reduction in Scope 3 emissions, contributing to SBTi-aligned targets. | •Operational integration: Implement closed-loop recycling systems for production cut-offs. Upgrade equipment to enable efficient material recovery and reintegration. •Product strategy: Roll out monomaterial product supporting zero waste vision. •Monitoring and reporting: Monitor and report waste reduction and recycling performance. | |||
Improving energy efficiency across operations presents a clear opportunity to reduce costs while lowering environmental impact. | •Cost reduction: Lower energy bills through reduced consumption and improved efficiency. •Emission reduction: Reduction in Scope 1 and Scope 2 emissions, contributing to SBTi-aligned targets. | •Operational optimization: Conduct energy audits to identify high-consumption areas. Invest in energy-efficient equipment and automation systems. •Energy monitoring: Monitor and report energy performance to drive continuous improvement. •Incentives: Implement incentives at top management level to support energy reduction. | ||||
Transition Opportunity, Energy Source | Entering into Power Purchase Agreements (PPAs) with renewable energy providers offers a strategic opportunity to significantly reduce Scope 2 emissions by sourcing electricity from clean energy sources. PPAs support long-term sustainability goals, help meet regulatory requirements, and demonstrate climate leadership to stakeholders, while also offering potential cost stability and financial predictability. | •Cost stability: Long-term energy price predictability through fixed-rate contracts •Emission reduction: Potential for Scope 2 zero emissions across key production sites. | •Energy strategy: Identify high-emission sites for PPA prioritization. •OEM targets alignment: Align renewable energy strategy with OEM decarbonization goals and regulatory frameworks. | |||
Transition Opportunity, Market | Differentiation through sustainable product portfolio: The transition to a low-carbon and circular economy presents a strategic opportunity to differentiate from competitors by offering a portfolio of environmentally responsible products. | •Revenue growth: Increased demand from OEMs seeking low-carbon and circular solutions. | •Product innovation: Expand product portfolio with low-carbon and recyclable solutions. •Customer engagement: Collaborate with OEMs on co-development of sustainable innovations. •Brand positioning: Communicate sustainability benefits clearly to customers and stakeholders. | |||
Differentiation through sustainability commitment: As the automotive industry accelerates its transition toward low-carbon and circular mobility, Autoneum has a strategic opportunity to differentiate through a strong and credible sustainability commitment. OEMs are increasingly integrating ESG criteria into supplier selection, favoring partners who demonstrate leadership in climate action, resource efficiency, and transparency. | •Revenue growth: Increased market share and customer retention. Competitive advantages in RFQs and partnerships. •Valuation impact: Enhanced brand reputation and stakeholder trust. | •Governance and strategy: Integrate sustainability into corporate strategy. Set and disclose SBTi targets for emissions reduction and resource efficiency. •Stakeholder engagement: Communicate sustainability commitments to OEMs, investors, and employees. •Transparency and reporting: Align disclosures with TCFD, CSRD, and CDP frameworks. Report progress on key ESG metrics including Scope 1, 2 and 3 emissions, waste, and water use. |
These opportunities influence Autoneum’s strategic direction, emphasizing sustainability and technological innovation, and impact its financial planning by creating avenues for new revenue streams and cost savings. This is reflected in several initiatives from Autoneum’s strategic pillars.
To summarize, the well-below 2°C transition to a lower-emission world presents both transition risks and opportunities for Autoneum. By aligning its strategy with a well-below 2°C scenario, Autoneum can mitigate physical as well as transition risks, while also leveraging opportunities to secure its long-term competitiveness and sustainability.
The climate transition plan aims to mitigate Autoneum’s impacts, to reduce its climate-related risks, and seize the opportunities we have identified. We are part of an emission-intensive industry, which makes the decarbonization of our business particularly relevant. In January 2023, the SBTi validated our mid-term reduction targets, which are in line with a well-below 2°C trajectory:
Furthermore, in line with Switzerland’s national climate target, Autoneum is committed to its target of net-zero emissions by 2050.
To achieve these targets and to increase Autoneum’s resilience with regard to climate-related risks, we have integrated sustainability–and climate-related issues in particular–on different levels. It is anchored in our corporate strategy, forms an integral part of measures contributing to the decarbonization of Autoneum, and is integrated into financial planning processes.
Autoneum’s Level Up corporate strategy consists of six strategic pillars, with two addressing issues that are relevant for our transition to a lower-emission economy:
In order to mitigate potential climate-related risks and to be able to seize the opportunities, it is vital to reduce CO2 emissions along the entire value chain. Autoneum has defined strategic measures to do so:
Autoneum has implemented several key measures to reduce emissions within its operations:
More detailed information on the management of energy and emissions within Autoneum’s own operations can be found in the Climate Change Mitigation Material Topic section.
Autoneum is committed to reducing its Scope 3 greenhouse gas emissions, particularly those arising from purchased goods and services. We have set a target to decrease these emissions by 20% by 2027 from the 2019 baseline. In order to meet this target, Autoneum has identified the most critical families that contribute to 69% of the directly purchased material emissions. These material families are: aluminum, fibers, felts, carpets, and foam reagents (polyols and isocyanates). Autoneum has engaged with the main suppliers of these commodities to set emission factor targets in line with our ambition to reduce Scope 3.
The measures include:
Beyond these critical suppliers, Autoneum actively engages with its supply chain through a Responsible Procurement Framework and the Supplier Code of Conduct. Both ensure that suppliers adhere to environmental standards and contribute to emission reduction efforts. More about Autoneum’s engagement with suppliers can be found in the Supply Chain Important Topic section.
In line with pillar 1 of our corporate strategy “Shape a future-fit product portfolio”, we are committed to enhancing the sustainability of our product portfolio by implementing several key measures:
To reduce the climate impact of our products throughout the entire lifecycle, we engage with our customers by developing and supplying innovative, lightweight components that enhance vehicle efficiency. These components, such as underbody systems made of Ultra-Silent, are up to 50% lighter than traditional plastic alternatives, leading to lower fuel consumption and reduced CO2 emissions. Additionally, our products improve vehicle aerodynamics, further contributing to emission reductions. The exchange with customers is also a focus in connection with ambitious pre-development projects, such as the Renault Emblème, which aims to reduce cradle-to-gate emissions by 90%.
Autoneum’s financial planning reflects a proactive response to climate risks and opportunities, ensuring resilience and competitiveness. Autoneum integrates climate-related considerations into financial planning through:
Autoneum places a strong emphasis on innovation and sustainability in its R&T endeavors, focusing on developing products that enhance vehicle efficiency while reducing environmental impacts. Consistent with our Level Up corporate strategy, which aims at fostering innovation and creating a future-ready product portfolio, we have established a New Mobility team dedicated to bringing new components for BEVs to market. In 2025, Autoneum successfully launched Impact Protection Plates and E-Fiber Flame Shields for BEVs. Furthermore, we have developed new components that promote a circular economy within the automotive industry. The innovative N-Join1 monomaterial carpet system, crafted from recycled materials, eliminates the need for latex and adhesives. Additionally, the Flexi-Light PET sound insulation system is made from a novel blend of polyester fibers, primarily sourced from recycled PET.
Moreover, Autoneum proudly hosted in 2025 the Automotive Acoustics Conference once again, a leading global convention for vehicle acoustics. The conference focused on smart practices in sustainable noise control, reflecting the increasing market and regulatory demands for performance and sustainability, along with the rapid advancements in the electrification of mobility. Going forward, Autoneum plans to further expand its R&T Center in China with a focus on new mobility and sustainable innovations.
Autoneum implements advanced manufacturing processes to improve energy efficiency and minimize waste, supporting its sustainability goals. All energy efficiency projects are tracked in a tool called MOVE in which capex, financial, and sustainability benefits are monitored. Each operational unit has annual reduction targets for energy efficiency improvements. Furthermore, Scope 1 and 2 reductions are part of the financial incentives through a bonus remuneration program.
Although specific details are not provided, strategic decisions are influenced by sustainability and innovation to align with long-term objectives. For instance, the acquisition of Borgers Automotive in April 2023 reinforced the recycling expertise of Autoneum with the renowned technology Propylat used for underbody shields, trunk parts, and wheelhouse outer liners. This technology enables the recycling of production waste back into the products. This technology can also be produced in a 100% polyester version, Propylat PET, which is part of the “Autoneum Pure.” label.
Autoneum’s emphasis on ESG criteria makes our organization attractive to sustainability-focused investors, strengthening our position in the capital markets.
Autoneum’s analysis showed that we face both climate-related risks and opportunities. While the “Regional Rivalry – A Rocky Road” scenario (above 2°C) poses some risks to Autoneum’s own infrastructure and supply chain disruptions, these effects are further in the future and allow us to take preventive measures. Autoneum is focused on maintaining a financially sound base with a solid financial ratio, ensuring a diversified supply chain and mitigating climate-related physical risks in the short and medium term. To complete the picture, a more detailed analysis of the individual sites should be carried out.
The Sustainability scenario (below 2°C), i.e., the transition to a low-carbon economy, also poses some risks. However, Autoneum considers the financial impact to be mostly low. In addition, we are well positioned to lead the transition by embedding sustainability and climate considerations into our corporate strategy, and thus not only mitigate the transition risks but also take advantage of the opportunities.
Autoneum maintains a risk management system and procedures for the identification, reporting, and management of risks.
In 2024, a team of sustainability experts from the Group Functions and the Business Groups identified potential climate-related risks and opportunities in a comprehensive way. These experts include representatives from the Business Groups, Operations, R&T, Legal, Strategy & Sustainability, Purchasing, Finance, EHS, and Quality. The starting point was an in-depth analysis of the current risks regarding climate-related aspects. During workshops, the team determined where in the value chain risks and opportunities are most likely to occur, as well as the time horizon under which the risks are expected to play out. Based on our risk classification scheme, the team also assessed the financial and the strategic impacts that the risks and opportunities would have on Autoneum’s strategy and planning. In 2025, Autoneum once again reassessed and updated these risks and opportunities with stakeholders.
All identified risks are categorized based on impact. For each Business Group and Group Function, a specific risk profile is prepared based on the probability of occurrence and its potential financial impact. Following the scaling of the two dimensions, the product of probability and impact indicates the relative weight of the risk (the expectation value). Any risks considered significant are included in the Risk Report to the Board of Directors and Group Executive Board.
The consolidation of the risks as well as the mitigation measures were then presented to the StSC. Finally, an aggregate view is included in a risk report submitted to the BoD and Group Executive Board. The measures relating to the identified risks and opportunities are listed in the tables and in the climate transition plan in the Strategy section.
Autoneum has integrated the identification, assessment and management of climate-related risks into its overall risk management framework through a structured and systematic approach:
Autoneum is committed to achieving net-zero emissions by 2050, in line with Switzerland’s national climate target. We aim to reduce the CO₂ emissions caused by our business activities as much as possible and have set near-term targets that are validated by the SBTi (see Climate Transition Plan). Detailed information on our decarbonization roadmap, including current and planned measures to reduce greenhouse gas emissions, can be found in the Climate Change Mitigation Material Topic section. The development of our climate-related metrics are also shown in that section.