Hexcel: Hexcel : Sustainability

Hexcel provides the broadest product portfolio of lightweight composite solutions for the aerospace industry, and we target select performance-oriented industrial markets. By lightweighting aircraft and other forms of transportation, fuel consumption is reduced leading to lower emissions. Hexcel composite solutions contribute to reducing fuel consumption by 25% on the composite rich A350 and B787 aircraft as compared to prior generation aircraft. In alignment with the sustainability of our products, Hexcel is focused on operating as a responsible and low-risk business partner by minimizing our environmental impact and acting ethically. To learn more, visit Sustainability and Composites Value Proposition on our website. OUR SALES CONTRIBUTION TO UN SDG 13 - CLIMATE ACTION More than 90% of 2023 Hexcel sales directly contributed to reducing global emissions by lightweighting aircraft and other forms of transportation. Measurably reducing global CO2 emissions from lighter and more aerodynamic aircraft that use less fuel supports Climate Action, per UN Sustainable Development Goal (SDG) #13. On Track 1 On Track 1 On Track 1 Achieved 2 2030 SUSTAINABILITY TARGETS Reduction in Reduction in Reduction in Reduction in GHG Emissions Waste to Landfill Freshwater Use TRIR 2 SUSTAINABILITY GOVERNANCE Board Level Oversight Our Board of Directors oversees the integration of sustainability into the Hexcel business strategy and has two designated sustainability experts. The Nominating, Governance and Sustainability Committee supports the Board in its oversight of sustainability. Fiscal Transparency More than 95% of our long- lived assets and more than 90% of our employees are located in U.S., France, U.K., Spain, Germany and Austria, all countries with robust laws and regulations. Further, ~80% of our purchasing in FY2023-2019 was invoiced from these six countries and in 2023 and 2022, more than 95% of our tax payments were paid in these countries. Political Contributions Hexcel has historically not made corporate contributions to political candidates, parties, or other organizations. Hexcel operates a PAC (political action committee) for eligible U.S. employees to make voluntary contributions. Our PAC did not make any donations in 2023 or 2021, and donated $18,000 in 2022, $5,000 in 2020 and $10,000 in 2019. HEXCEL RATINGS 85% of peers rated below AA 28.9 Rating Peer median is 29.9 ( lower score denotes less risk) C Rating Consistent with sector average Index 2022 ENVIRONMENTAL >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> GHG Emissions 2023 2022 2021 2020 2019 Scope 1 (metric tons CO2e) 185,002 188,140 139,241 129,310 196,449 GHG Scope 2 location-based 150,391 151,505 131,593 123,525 199,323 TCFD-2022.pdf approach (metric tons CO2e) Emissions (hexcel.com) Scope 2 market-based 155,978 150,186 112,750 106,493 183,699 approach (metric tons CO2e) Scope 1 & 2 revenue 0.188 0.213 0.202 0.165 0.159 intensity Renewable • ~20% of our global power consumption is sourced from renewable power generation. OUR ENVIRONMENTAL Energy • In 2024, six of our manufacturing sites procured 100% renewable energy. COMMITMENT | Hexcel • 25% of Hexcel total waste is recycled. OUR Waste ENVIRONMENTAL • Over 80% of dry carbon fiber waste is recycled. 3 COMMITMENT | Hexcel • More than 85% of our sites are ISO 14001:2015 certified, aligning our management systems Stewarding Resources ISO 14001 to the ISO standard for Environmental Management. • Responsibly | Certification We are working to add our remaining sites under our Hexcel Corporate ISO 14001:2015 Sustainability | umbrella certificate. Hexcel SOCIAL >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> Board • Three of the eight Board of Directors are gender diverse, or 37.5% Caring for People | • The Hexcel Board of Directors has maintained gender diversity for over two decades, Sustainability | Diversity beginning in 2001. Hexcel- Workforce • 33% of Executive Officers identify as gender diverse. Caring for People | Sustainability | Diversity • ~40% of our global workforce self-identifies as female or a U.S.-based person of color. Hexcel- Diversity • Hexcel sources diverse candidates for 100% of our external salaried positions, including Caring for People | Sustainability | Recruiting executive management and board of director level appointments. Hexcel- Workplace • Our goal remains zero injuries in the workplace. We use a number of initiatives and policies Caring for People | as well as consistent training and reinforcement to support our Soar-to-Zero worker safety Sustainability | Safety campaign for zero injuries. Hexcel- • More than 50% of our manufacturing sites are ISO 45001:2018 certified, aligning our Stewarding Resources ISO 45001 management systems to the ISO standard for Occupational Health and Safety. Responsibly | Certification • We are working to add the remaining sites under our Hexcel Corporate ISO 45001:2018 Sustainability | Hexcel umbrella certificate. • We require and have achieved 100% of our critical direct suppliers to commit through Sustainable our Supplier Code of Conduct to comply with all applicable laws and sustainability Doing the Right Thing requirements and to cascade these requirements through their own supply chain. with Transparency | Procurement • We employ a rigorous risk assessment process for priority suppliers, conducted annually, Sustainability | Hexcel including detailed audits to ensure sustainable and reliable supply. 1 - Hexcel's progress toward its 2030 Sustainability Targets is communicated on page 9 of the shareholder letter in our 2023 Annual Report . 2 - Hexcel's TRIR (total recordable incident rate) reduction target was achieved by FYE 2023, per page 9 of the shareholder letter in our 2023 Annual Report . 3- Hexcel collaborates with Fairmat ( www.Fairmat.tech ) for carbon fiber prepreg recycling, Carbon Conversions (CCI - www.carbonconversions.com ) for dry fiber recycling, and other carefully selected composites recyclers for repurposing Hexcel production scrap and waste. October 2024 Attachments Original document Permalink Disclaimer Hexcel Corporation published this content on October 05, 2024 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on October 05, 2024 at 21:32:08 UTC .