Corporate 
­Responsibility 
Report
2021

Content
Principles of Governance
3
Planet
5
People
7
EU-Taxonomy
10

3
Annual Report 2021 | ESG Report
NON-FINANCIAL CONSOLIDATED STATEMENT PURSUANT TO SECTION 315B HGB 
“Enabling outstanding solutions for a better world”
Innovation and growth have always characterized our 
entrepreneurial DNA. Together with our other values of unity – 
“one hGears,” integrity, diversity, and consciousness for 
tomorrow – “sustainability,” we have built a strong foundation 
for contributing to a better world. 
•	 One hGears: Anything is possible when we work together!
•	 Integrity matters: We are honest and transparent!
•	 We are diverse: We empower everyone!
•	 Passion for growth: Development is in our DNA!
•	 Driven by innovation: Our curiosity creates opportunities!
•	
Dedicated to sustainability: Whatever we do, we do  
for tomorrow!
The COVID-19 pandemic has shown how quickly changes with 
a major social impact are possible and how important it is for 
companies to be agile and adaptable. hGears operates in the 
innovative, fast-growing e-mobility market. Mobility is among 
those sectors undergoing one of the most transformational 
technological shifts. The COVID-19 pandemic highlighted the 
immense potential of cycling because, while public transport 
was used less in many cities, the use of bicycles increased 
enormously – and the urban growth potential is very high.1 In 
any case, electric vehicles are a key disruptive force in the 
mobility market.2 
•	
The number of registrations of electric and hybrid vehicles 
has increased significantly due to increasing urbanization 
and growing demand for micromobility solutions and 
higher legal requirements for emission reduction. 
•	
The European market for e-bikes and EHVs (Electric & 
Hybrid Vehicles) is forecast to grow by 43 % and 22 % per 
year, respectively, from 2020 until 20253. 
Due to the strategic decision to focus on fast-growing, 
sustainable end markets, such as e-mobility, hGears has turned 
out to be one of the winners of this structural change. We seize 
the right emerging opportunities and adapt our business and 
operating models swiftly. As winners of this change, we want to 
give back not only to our investors, but to all the people who 
come into contact with us or are affected by our business.
Making the rapid growth of the mobility market sustainable to 
all stakeholders – both from a production and a distribution 
perspective – is a challenge for us. But we love challenges and 
since hGears is known for our “we can do it” attitude, we take 
responsibility for our results. We intend to tackle all of the 
tasks this involves in the areas of governance, people and 
planet as ambitiously as the achievement of the best product 
performance. We walk the talk.
As a supplier of first-class precision gears and components for 
e-mobility applications, we see our main task in supporting the 
shift to clean mobility, and we look forward to accompanying 
our many customers on this journey. However, a “green” 
business model does not automatically make a company 
sustainable. That is why, just one year after hGears’ IPO, we set 
ourselves the goal of producing a Non-Financial Report in 
which we show our stakeholders, based on a broad data basis, 
our ongoing developments towards becoming an even more 
sustainable and responsible company.
Our journey towards sustainability has only begun, but right 
from the start, we want to meet the high standards of the 
World Economic Forum (WEF) and the Global Reporting 
Initiative (GRI), and also make our contribution to the 
Sustainable Development Goals (SDGs), wherever we can. We 
will selectively apply the recommendations of the WEF, the 
GRI, and the SDGs as far as reasonably possible.
The Sustainability Accounting Standards Board (SASB) has 
defined the following material topics for hGears’ industry: 
energy management, employee health and safety, product 
lifecycle management and business ethics. Improving 
performance in these areas has a strong positive impact on the 
overall ESG rating of the company, however, even more 
importantly, it will contribute to the world we live in. hGears’ 
sustainability strategy therefore focuses on these metrics.
Principles of Governance
Enabling Corporate Responsibility
In this fast-changing world, our core values remain firm. We 
show that growth and sustainability do not have to be 
opposites. We bring these dimensions together through unity, 
diversity, integrity, and innovation.
Sustainability is part of our business model, one of our core 
values, and permeates all our corporate actions – from 
corporate governance to our employees and all stakeholders 
who interact with us. To achieve this ambitious goal, 
sustainability is promoted by the Management Board. The 
1	 https://www.zukunftsinstitut.de/dossier/megatrend-mobilitaet/
2	 https://assets.kpmg/content/dam/kpmg/xx/pdf/2019/02/mobility-2030-transforming-
the-mobility-landscape.pdf
3	 IHS Markit, March 2021; Cycle Industries Europe, CONEBI and ECF

4
Annual Report 2021 | ESG Report
CEO and the CFO are ultimately responsible for the successful 
implementation of our sustainability strategy. The Supervisory 
Board oversees the implementation of our sustainability 
strategy and has also reviewed the disclosures in this report. 
Our conduct as a company throughout the Group is based on 
three main guidelines: 
•	
The Code of Ethics contains a set of ethical principles and 
values that characterize the company’s policy and 
determine the behavior of the recipients. The Code is 
available on the hGears website www.hgears.com under 
the “company” tab.
•	
 Furthermore, we have drawn up policies on various topics 
in which we define the attitude and approach of hGears, 
which we will also publish on our website www.hgears.com 
under the “company” tab in the first half of 2022.
•	
Pursuant to Section 161 of the German Stock Corporation 
Act (AktG), the Supervisory Board and the Management 
Board have issued a Declaration of Conformity with the 
“German Corporate Governance Code” to define the 
responsibilities and selection criteria for the Management 
Board. The Group’s Declaration of Conformity can be found 
on the hGears website www.hgears.com under the 
“Corporate Governance” tab in the “Investor Relations” 
section. 
Enabling integrity through compliance with regulations
hGears respects the integrity of marketplaces and fair 
competition, and strictly prohibits non-competitive behavior. 
In the years 2019, 2020, and 2021, hGears did not record any 
monetary losses that occurred as a result of legal proceedings 
associated with anti-competitive behavior regulations.
Since compliant behavior is a top priority for hGears, it is 
important that we learn of potential misconduct and are able 
to remedy it. Any concerns about unlawful behavior and lack 
of organizational integrity should be raised without fear of 
retaliation. To keep the barrier to raising such complaints low, 
a whistleblower mechanism will be implemented in the course 
of 2022.
Enabling fair competition 
We believe in fair competition, and corruption and bribery 
harm fair competition. At hGears, bribery and corruption, 
including inappropriate/improper payment, special favors, 
extortion or kickbacks are fully prohibited. The company 
strives to avoid bribery and corruption at all its operations and 
adheres to all applicable national laws in Italy, Germany and 
China. hGears takes a zero-tolerance approach to bribery and 
corruption. The company is committed to carrying out all of its 
business honestly and with integrity. This means that hGears 
does not receive, give, or promise anything of value for the 
purpose of gaining an improper advantage. Engaging in bribery 
or corruption, as well as supporting it indirectly, can lead to 
substantial fines, dismissal, and imprisonment. Any violations 
of hGears’ anti-bribery and corruption standards are treated 
seriously, and can lead to disciplinary measures, including a 
demotion, reprimand, forfeiture of bonuses, suspension and/or 
dismissal. Our employees will be able to find more details on 
our zero-tolerance approach to bribery and corruption in our 
bribery and corruption policy, which will be published on our 
website in the first half of 2022. In principle, compliance 
violations can lead to significant fines, loss of reputation, claims 
for damages or other penalties. hGears mitigates these risks 
with its Code of Ethics and the guidelines for action contained 
therein. For more information, please access the risk report. 
Our Code of Ethics also addresses in detail hGears’ stance and 
necessary approach to intellectual property as well as export 
controls and economic sanctions.
Enabling our stakeholders
We already maintain a dialogue with selected stakeholder 
groups, including employees, investors, analysts and other 
business partners. In the future, however, we would like to 
involve yet other groups, such as industry experts, universities 
or the scientific community. Since we strive to comply fully with 
the standards of GRI, a materiality analysis is planned to take 
place in the near future. Materiality, according to GRI, 
addresses those topics that have a direct or indirect impact on 
an organization’s ability to create, preserve or erode economic, 
environmental and social value for itself, its stakeholders, and 
society at large. By identifying and prioritizing material topics 
together with a multi-perspective stakeholder approach, we 
will be able to meet our objective of shared value to an even 
greater extent in the future. 
We already hold conference calls on all quarterly results and 
participate in one-on-one meetings as well as conferences 
One hGears: 
Anything is 
possible when we 
work together!

5
Annual Report 2021 | ESG Report
where we exchange ideas with a group of select, primarily 
financial stakeholders. In fact, we participated in more than 
100 one-on-one meetings and 5 conferences in 2021.
Enabling sustainability as part of our risk management
Socio-ecological risks are part of our risk management 
system. hGears’ risk management system is designed in such 
a way that risks can be identified at an early stage and that 
countermeasures can be taken. This is explained in more 
detail in the Opportunity and Risk Report section of the 
Annual Report. In the Group, the Management Board and 
their subordinate operating managers are responsible for 
the risk management system. Risk management is supported 
by the internal control system (ICS). 
The risk analysis identified climate change as a relevant 
non-financial risk for hGears. Climate change is a powerful 
transformative force that will alter the world as we know it. 
Key climate change-related risks arise from changing market 
conditions, disruptions to supply chains due to extreme 
weather events, increased costs of energy and supplies, and 
the impact of more significant changes in temperatures and 
weather on manufacturing facilities. This changing 
environment opens a wide range of opportunities for us. We 
are recognizing and seizing these opportunities through our 
range of products and services.
Planet
Climate change has been described as the most serious 
challenge facing the world today. Despite increasing efforts of 
countries and companies, there is a long way to go in the race 
to net-zero, decarbonization, and tackling the devastating 
effects of climate change. In this process, some sectors are 
being disrupted with new markets emerging, while other 
sectors are converging or disappearing entirely.4
By the time of the Paris Climate Agreement, global 
temperatures were projected to rise by 3.6 °C to 4.2 °C by the 
end of the 21st century – a development that would have had 
catastrophic consequences for the ecosystem. At current 
emission levels, global warming of 2.7 °C to 3.1 °C is projected. 
However, the Paris Climate Agreement target is well below 
2 °C. This means that emission reduction efforts will have to be 
stepped up considerably. A total of 21 % of 2016 global 
greenhouse gas emissions was attributable to energy usage in 
industrial production processes.5 Reducing greenhouse gas 
emissions from industrial companies is therefore critical in 
terms of countering climate change.6
Achieving the 2 °C target is a major challenge for our society. 
We are aware of our great responsibility to improve resource 
and energy efficiency and see it as our duty to constantly work 
on improving our environmental performance. 
Turning risks into opportunities 
“A new economic model is developing and we do not yet know its 
final shape, we only know it will necessarily be a model of circular 
economy based on new and extraordinary technologies. We will 
embrace this adventure with an open mind and heart giving our 
contribution of knowledge and passion.” 
Pierluca Sartorello – hGears CEO
Climate change has accelerated innovation in mobility 
solutions, among which e-mobility plays a key role. Here we 
want to enable outstanding solutions to shape a better world. 
hGears is the market leader in the future-oriented and fast-
growing field of e-mobility applications. In the field of precision 
gear parts and components for the e-bike end market, we are 
proud to be the global market leader. Our strengths are 
innovations and co-development capabilities and best in class 
product quality that is reflected in long-term relationships with 
blue chip customers. 
Over the past few years, we have been able to significantly 
expand our sales of products that reduce emissions. For 
example, our sales in the areas of e-Mobility (e-bikes and EHV) 
and e-Tools (professional power tools and gardening tools) 
increased from EUR 70.0 million in 2019 to EUR 85.3 million in 
2020 and EUR 91.7 million in 2021.
e-Mobility is the area of the business in which hGears will 
generate the highest growth in the years to come. The company 
is aware of its responsibility as an industrial Group. Currently, 
our complete focus is on enabling a shift towards e-mobility 
through our products. In the future, we will also gradually 
convert our conventional business to e-Mobility, and the next 
product generations will already be converted to electric and 
hybrid vehicles (EHV). We are confident that, due to the 
strategic decision to focus on components for e-mobility, we 
will benefit from the change in mobility habits instigated by 
4	 https://assets.kpmg/content/dam/kpmg/xx/pdf/2019/02/mobility-2030-transforming-
the-mobility-landscape.pdf
5	 https://ourworldindata.org/emissions-by-sector
6	 https://globalchallenges.org/global-risks/climate-change/
We are diverse:  
We empower everyone!

6
Annual Report 2021 | ESG Report
climate change. We are also feeling the first effects of climate 
change, which are described in the risk report. However, 
these have only been temporary and short-term thus far. We 
therefore do not expect any major business risks arising from 
climate change in the medium term.
Energy and greenhouse gas emissions
The Earth Overshoot Day, also known as Ecological Debt Day, 
fell on July 29 in 2021. It marks the day in a given year when the 
annual resources are used up. That means, in 2021, we used as 
many resources as 1.74 earth units would provide, but we only 
have 1 planet earth. Therefore, we understand it as our duty 
not only to reduce our emissions, but to also reduce our 
resource usage.
As part of our increasing awareness and investments in recent 
years, we were able to decrease our Scope 1 CO2 emissions in 
Schramberg, Germany, and Padova, Italy, by more than 17 % 
from 19,807.78 t in 2019 to 16,330.35 t in 2021. Sadly enough, 
due to an information restriction imposed in PRC, we were 
unable to calculate our exact CO2 emissions at our plant in 
Suzhou, China. 
We can currently only provide data on our indirect CO2 
emissions for our plant in Schramberg, but plan to extend this 
to the entire Group in the future. The respective values can 
be found in table 2. The Scope 2 CO2 emissions in Schramberg 
declined significantly by 47.81 % from 2019 to 2021. Scope 3 
CO2 emissions were reduced by 1.61 % in the same period. 
Besides these CO2 emissions, we do not produce any other 
greenhouse gases at all our plants.
Scope1 CO2 
emissions [t]
Scope2 CO2 
emissions [t]
Scope3 CO2 
emissions [t]
2019
808.75
4,823.98
8,062.56
2020
859.33
4,130.52
8,254.49
2021
587.63
2,517.59
7,933.12
Table 1: Scope1 – Scope3 emissions at our Schramberg plant in Germany
One of the initiatives through which we intend to reduce our 
CO2 emissions is the introduction of fully electric heat 
treatment in Schramberg in the fall of 2021. This facility uses 
electricity instead of gas and therefore helps to reduce 
emissions.
Our energy consumption in terms of sales declined from 
298.90 MWh/EUR million in 2019 to 287.58 MWh/EUR million 
in 2020 and 279.90 MWh/ EUR million in 2021. 
Energy usage  
kWh/EUR million
2019
298.90
2020
287.58
2021
279.90
Table 2: Energy usage in relation to revenues
Due to a lack of data, we can currently only present the share 
of renewable energies in our electricity consumption for our 
plant in Schramberg. Here we increased our share of energy 
from renewable sources from 37.94 % in 2019 to 47.59 % in 
2020 and to 52.97 % in 2021. The global certification ISO 
50001 Energy Management System helps the production 
plants with their efforts to establish an energy management 
system and use their energy more efficiently and effectively. 
We will provide more detailed information on our approach to 
energy efficiency for our employees in our Energy Efficiency 
Policy, which will be published on our website in the first half 
of 2022.
As we believe there is no other way to keep our planet green, 
going forward, we also want to generate our own electricity 
through renewable sources wherever possible. One first step 
in this direction is the installation of solar power panels at our 
site in Suzhou in 2022 that will enable us to cover 20 % of this 
site’s energy requirements in the future.
Clean growth
Since all our products are composed of steel and some of 
aluminum as well, they are all recyclable. We are thus 
contributing to a circular economy, while improving our own 
environmental performance from year to year. 
hGears is committed to constantly improving its management 
of all waste and reducing waste to minimize its adverse impact 
on the environment. We were able to reduce the waste we 
produce in relation to sales from 46.86 t/EUR million in 2019 
to 43.76 t/EUR million in 2020 and 44.20 t/EUR million for 
2021. Of that waste, a large share, 83.67 % to be exact, was 
recycled or used for other purposes, an increase of 1.76 
percentage points. The total amount of hazardous waste from 
manufacturing in relation to sales was kept relatively stable, 
at 10.27 t/EUR million in 2019 and 10.01 t/EUR million in 
Driven by 
innovation: Our 
curiosity creates 
opportunities!

7
Annual Report 2021 | ESG Report
2021. Pursuant to ISO 14001, we keep close records of the 
production and processing of all waste. 
Waste  
t/EUR million 
Hazardous waste
t/EUR million 
Recyclability 
%
2019
46.86
10.27
81.91
2020
43.76
9.14
82.85
2021
44.20
10.01
83.67
Table 3: Production of (hazardous) waste linked to revenues as well as 
recyclability of the waste
hGears’ production sites are certified according to IATF 16949 
(quality management) and ISO 14001 (environmental 
management). Environmental management helps us to plan 
and control our impact on the environment during the 
production and distribution of goods. 
Our growth needs to be sustainable. A look at the ratio of 
emissions to revenues shows an increase in resource utilization 
in most areas (table 2). 
One initiative with which we are significantly reducing the 
volume of waste is the plants for recycling metal residues in 
Schramberg and Padova. We have also been implementing dry 
manufacturing processes for years wherever possible. To the 
extent possible, we are switching from oils and lubricants to air 
for cooling the metals during cutting. This allows us to process 
the resulting residues for recycling in our plant in an energy-
efficient manner.
Environmental management
We also pay close attention to environmental standards when 
selecting suppliers. In accordance with ISO 14001, we consider 
the environmental performance and practices of suppliers to 
make our supply chain as environmentally efficient as possible.
e-mobility is not possible without raw materials. A large share 
of the raw materials required for e-mobility components come 
from developing and emerging countries, and the sustainability 
of the supply chain is critical. As users of materials, such as 
graphite, tungsten, vanadium and cobalt, we are well aware of 
the sustainability risks in the supply chain. We are working to 
diversify suppliers to reduce our dependency and are also 
expanding stockpiling material to reduce the share of critical 
materials. Moreover, we are developing alternative materials 
to replace critical materials.
People
United in diversity
Our differences do not divide us, they enrich us. We believe in 
the individual as much as we believe in the team. With our 
positive view of mankind and our values, we create an 
environment for our employees in which they can develop and 
contribute to the company’s success. Our employees in Italy, 
Germany, and China are united by a common company culture. 
We are also committed to human rights, diversity, and equal 
opportunities as well as occupational health and safety.
Enabling a healthy and safe working environment
Not only are our products and business models changing, so is 
the way we work. To enable and embrace this change, our 
employees need to be healthy, feel safe and be prepared to 
manage change. We believe in a corporate culture where 
people have equal opportunities regardless of nationality, 
gender, age, or faith. For us, “thinking about tomorrow today” 
implies offering employees opportunities and actively shaping 
their future. As a result, we as a team are prepared for all the 
challenges that await us.
Employee health and safety is a top priority for hGears. The 
company is committed to ensuring a safe, healthy, adequately 
protected and productive work environment and to spread and 
consolidate a culture of safety. All employees are required to 
perform their tasks safely and promptly report any conditions 
that could pose a risk to health, safety or the environment. 
Regarding health and safety management systems, hGears 
obtained the ISO 45001-2018 certificate in December 2019 at 
its site in Padova. We also work on obtaining the ISO 45001-
2018 certificate at our sites in Schramberg and Suzhou by 
2024.
hGears has obtained the ISO 9001:2015 certificate for its 
quality management at all its business sites. The certificate was 
issued in March 2019 at its site in Schramberg and in July 2021 
at its sites in Suzhou and Padova. Furthermore, hGears has a 
dedicated safety commission. Its main task is to develop, 
update, and implement safety standards and preventive 
measures to avoid workplace accidents. The safety commission 
supports and coordinates regular risk assessments, training 
courses, safety briefings and on-site inspections at the 
company’s various sites. In addition, the safety commission also 
serves as an active forum for questions or issues related to the 
Dedicated to 
sustainability: 
Whatever we do, 
we do for 
tomorrow!

8
Annual Report 2021 | ESG Report
topic of workplace safety. The commission’s members regularly 
analyze the current status quo of hGears’ health and safety 
activities and report on progress in this area to the CEO. 
We work under strict hygiene standards so that our teams can 
feel safe at all times, including throughout the COVID-19 
pandemic. Against the backdrop of the COVID-19 pandemic, 
hGears implemented a risk mitigation plan that included 
massive testing in case of a positive case at the plants, 
temperature and green pass control before entering the plant, 
internal reviews of canteen and shift management, as well as 
coffee break regulation. We also set up a COVID-19 committee 
involving the unions. In our health and safety policy, which will 
be published on our website in the first half of 2022, we provide 
our employees with more detailed information regarding 
health and safety in the workplace.
Achieving our goals as a team
In 2021, an average of 871 permanent employees were on the 
payroll; this represents an increase of 8 people compared to 
the previous year (2020: 863; 2019: 883). In the period under 
review, 315 permanent employees were on the payroll in 
Schramberg, 296 in Padova, and 260 in Suzhou (2020: 
328/321/214; 2019: 328/331/224). 21.4 % of our permanent 
employees were women in 2021 (2020: 23.8 %; 2019: 23.0 %). 
In light of the fact that diversity is one of our core values, we 
are striving to increase the share of women among our 
employees in general and at the first and second management 
level. In Schramberg, 13.0 % of the managers at the first and 
second management level were female in 2021, compared to 
12.8 % in 2020 and 8.7 % in 2019. For Suzhou, this number 
was at 28.0 % in 2021, up from 25.0 % in both 2020 and 2019. 
In Padova, the share of women at the first and second 
management level was at 12.5 % in 2021 (2020: 13.3 %; 2019: 
13.3 %).
Average permanent 
employees
Number of 
employees in 
Schramberg
Number of 
­employees in Padova
Number of 
­employees in Suzhou 
Total nationalities 
within hGears
2019
883 
328
331
224
23
2020
863
328
321
214
23
2021
871
315
296
260
26
Table 4: Number of total average permanent employees, also split up to show the different sites.
Percentage of female employees [%]
Females at the first and second management levels [%]
Schramberg
Padova
Suzhou
2019
23.0
8.7
13.3
25.0
2020
23.9
12.8
13.3
25.0
2021
21.5
13.0
12.5
28.0
Table 5: Percentage of female employees and percentage of women at the management level
Number of new employees
Share of women in hired employees 
[%] 
Turnover rate [%] 
2019
211
13.3
5.0
2020
217
18.4
3.4
2021
255
30.6
5.1
Table 6: Number of new employees, share of hired women and turnover rate
hGears hired a total of 255 new employees in 2021, 78 women 
and 177 men, at its three business locations (2020: 217 in total, 
40 women and 177 men; 2019: 211 in total, 28 women and 183 
men). The share of women that were hired has increased 
steadily over the past three years, from 13.3 % in 2019 to 
18.4 % in 2020 and 30.6 % in 2021. Our company-wide 
turnover rate was at 5.1 % in 2021, compared to 3.4 % in 2020 
and 5.0 % in 2019.
Our employees receive a competitive salary in line with the 
market. Remuneration is based on position, responsibility and 
tasks, not on personal characteristics such as gender or origin. 
In addition to the fixed base salary, variable, performance-
related salary components are intended to incentivize 
motivation. The level of compensation is reviewed regularly 
and adjusted, if necessary, as part of personal development 
discussions. To ensure fair compensation, we use a salary 
benchmark tool.
With our sites in three different countries, hGears is 
internationally positioned. We also want to live internationality 
through a diverse workforce. In 2021, we had employees with 
more than 26 different nationalities, compared to 23 in both 
2020 and 2019. Our work culture enables equal opportunities

9
Annual Report 2021 | ESG Report
regardless of gender, age, origin, sexual orientation, disability, 
or other discriminatory characteristics. We educate our 
employees about the issues of diversity and inclusion to 
simultaneously reduce prejudice and build intercultural 
awareness. More information for employees can be found in 
our diversity and opportunity policy, which will be published on 
our website in the first half of 2022.
In order to make work in our factories more attractive and 
accessible to women in particular, we have launched several 
initiatives in recent years. For example, we have purchased 
machines to help with the lifting of heavy objects, which also 
makes this work possible for women.
Our entire recruitment process is non-discriminatory and 
diversity-oriented. 
Enabling progress through training 
hGears focuses on dedicated training specifically developed for 
young workers who are entering the job market. This provides 
them with the opportunity to develop technical skills and 
become skilled workers. In 2022, we launched a leadership 
training program for managers and key personnel, especially 
between Italy and Germany. In Italy, Germany, and China, 
hGears collaborates with Enactus, an international 
organization that promotes the next generation of young 
entrepreneurs, and pays particular attention to social and 
environmental issues with regard to several projects. For 
example, hGears supported the Italian National Competition 
and also participated as a judge in the German National 
Competition held by Enactus.
Through practice-oriented training, we want to satisfy the 
increasingly demanding markets and meet the more complex 
requirements in terms of technology and innovation. We 
established the “Lean Academy” to train our employees in “5S”, 
a basic method for safe, clean, and efficient workplace 
practices. As part of our equal opportunities and diversity 
approach, we focus on training all of our employees. We were 
able to increase the average training hours per employee to 
22.4 in 2021 compared to 15.3 in 2020, when the number 
dropped due to COVID-19. We also provided 22.4 training 
hours per employee in 2019. The average cost of training 
company-wide was EUR 747 per employee in 2021 (2020: 
EUR 518 per employee; 2019: EUR 534 per employee). 
Compliance with social & environmental standards in the 
supply chain 
Our supply chain mainly includes companies that deliver cut 
metal and powder metal. With the Modern Slavery and Human 
Trafficking Statement, hGears has an up-to-date anti-slavery 
policy within the company and regularly reviews suppliers for 
reliability and compliance. To ensure that our suppliers comply 
with minimum labor standards and are not involved in child 
labor or slavery, we ask them to confirm that they do not 
employ anyone under the age of 16. More detailed information 
on our approach to freedom of association, modern slavery and 
child labor as well as the respective due-diligence process can 
be found in the Code of Ethics on our website. 
Human Rights
At hGears, we recognize our responsibility to respect and 
promote universal human rights. We consider respect for 
universal human rights as our duty and as a fundamental 
contribution of our company to society. At the same time, we 
believe that respect for human rights and the promotion of a 
respectful corporate culture contribute significantly to the 
sustainable success of our company and help to mitigate 
corporate risks. We strive not to exploit employees, but to let 
them grow into valuable members of our company through 
mutual respect and appreciation. This applies to all of our 
subsidiaries, our corporate sites, and generally wherever 
hGears operates – even beyond the laws that apply there. In 
our Code of Ethics which can be found on our website, we 
provide more detailed information on our approach to human 
rights as well as the respective due diligence process. 
Passion for  
growth: 
Development is  
in our DNA!

10
Annual Report 2021 | ESG Report
EU-TAXONOMY
The aim of the EU Taxonomy is to encourage investment flows 
to companies engaged in environmentally sustainable 
activities. In this way, the EU Taxonomy is intended to assist in 
the implementation of the European Green Deal. The first 
environmental targets “Climate Change Mitigation” and 
“Climate Change Adaptation” were deposited with criteria in 
the EU legislation in mid-2021.
The reporting obligation pursuant to Article 8 of Regulation 
(EU) 2020/852 of the European Parliament and of the Council 
requires the disclosure of the share of our revenue, capital 
expenditures and operating expenses that are taxonomy-
eligible for financial year 2021. Taxonomy-eligible refers to the 
environmental objectives of “climate protection” and 
“adaptation to climate change” currently being developed in 
the EU Taxonomy. Activities of hGears that are not currently 
covered by the EU Taxonomy are reported on a flat rate basis 
as not taxonomy-eligible. Starting in reporting year 2022, we 
will also report which sum and which share of our economic 
activities are taxonomy-aligned. 
In order to assess the eligibility for the Taxonomy, we first 
reviewed all of our activities. In accordance with Commission 
Delegated Regulation (EU) 2021/2139, we have identified the 
following activities to which hGears contributes:
•	
Manufacture of other low-carbon technologies
•	
Manufacture of low carbon technologies for transport
The Delegated Act on the implementation of reporting 
requirements did not enter into effect until December 2021. 
Only since this date is it clear what information must be 
published within the framework of the EU Taxonomy. And 
since hGears had gone public only a few months earlier in May 
2021, we had little time to establish the complex structures 
that need to be put in place to record taxonomy-eligible 
economic activities in our sub-framework. However, since we 
find the regulations of the EU Taxonomy useful and support 
them with our full conviction, we have endeavored to present 
approximate values, initially for the area of e-bikes.
The activities in the e-bike area have been classified as eligible 
because we are developing solutions for the emission-free 
mobility of the future. We thus make a direct contribution to 
the “Manufacture of low carbon technologies for transport.”
From 2023 on, we will also successively evaluate the areas 
e-Tools and EHVs and present corresponding figures that 
document our high commitment and our willingness to perform 
in the area of sustainability. 
The assessment of our revenue on taxonomy eligibility was 
based on the revenues defined and reported in the 
Consolidated Financial Statements of hGears AG. For the year 
2021, we only take the revenue of our e-bike activities into 
account. Based on this consideration, the share of taxonomy-
eligible revenues in 2021 was 31.8 % of total revenue. For the 
reporting period, only the investments (CAPEX) made for the 
e-bike activities are regarded as taxonomy-eligible, i. e. the 
share of taxonomy-eligible investments in the total investments 
reported in the Consolidated Financial Statements amounted 
to 35.4 %. Operating expenses include non-capitalized research 
and development costs, which are not reported in this form 
in the Consolidated Financial Statements. Since our new 
projects almost exclusively concern products that support 
environmental protection and sustainability, we consider our 
research and development costs (OPEX) to be taxonomy 
eligible. Thus, taxonomy-eligible operating expenses in 2021 
amount to 2.8 % of total operating expenses.
Total
Taxonomy-­
eligible million 
[%]
Not taxonomy-­
eligible [EUR million] 
[%]
Revenue
134.9
42.9
31.8
92.0
68.2
Capital expenditure
14.7
5.2
35.4
9.5
64.6
Operating expenses
57.3
1.6
2.8
55.7
97.2
Table 7: Revenue, capital expenditures and operating expenses in 2021
Integrity matters: 
We are honest 
and transparent!

Publisher
hGears AG
Brambach 38
78713 Schramberg
Germany 
Phone: +49 (7422) 566 222
Fax: +49 (7422) 566 805 
E-Mail: ir@hgears.com
Web: ir.hgears.com
Publication date March 30 2022
Design and typesetting 
cometis AG
Unter den Eichen 7
65195 Wiesbaden 
Germany
Phone: +49 (0) 611 20 58 55 0
Fax: +49 (0) 611 20 58 55 66
E-Mail: info@cometis.de 
Web: www.cometis.de/en
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Disclaimer
This report contains forward-looking statements. These statements are based 
on current experience, estimates and projections of the Management Board 
and the information available at the time this financial report was prepared. 
They are not guarantees of future performance and results and are subject 
to risks and uncertainties that are beyond hGear’s ability to control or 
predict, such as future market conditions, regulatory changes or the 
behaviour of other market participants, for instance. These and other 
factors can cause the actual results, performance and financial 
position to deviate significantly from the estimates stated herein. 
hGears does not assume any obligation to update the forward-
looking statements contained in this report. Certain numerical 
data, financial information and market data, including 
percentages, in this document have been rounded according to 
established commercial standards. Furthermore, in tables 
and charts, these rounded figures may not add up exactly to 
the totals contained in the respective tables and charts. In 
the event of any deviations, the German version takes 
precedence. When persons are mentioned in this 
publication, this always refers to female, male and 
diverse (for example transsexual and intersexual) 
persons. For reasons of better readability and/or 
formal or technical reasons such as limited space or 
the better findability of web texts, not all variants 
are always mentioned.