Sustainability
Report 2022

Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendixContents

1
Overview

10

The Group

15

Sustainability approach

25

Environment

32

Social43

Governance49

Appendix

TI Fluid Systems plc | Sustainability Report 2022

TI Fluid Systems
For the past 100 years, we have provided advanced fluid handlingand thermal management solutions for increasingly efficient internal
combustion vehicles.
Now we are using our expertise and technologies to Take the Turnto support electrification with products designed for hybrid and battery
electric vehicles, contributing to a greener and cleaner environment
and making the world a better place to live.
We seek to achieve our long-term success in a sustainable, socially
responsible, ethical and compliant manner and strive to reduce our
impact on the environment by focusing on resource conservation,energy efficiency, renewable energy sourcing and water conservation.

1

Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

Our corporate purpose
Our corporate purpose

Our purpose is to help make vehicles cleaner andgreener to protect our environment and make ourworld a better place to live.
In pursuit of our purpose, we work together with
our many OEM customers and suppliers aroundthe globe to design, develop, manufactureand deliver a wide range of award-winning,industry-leading automotive fluid systems,
operating in a sustainable manner out of
98 manufacturing locations in 28 countries.

Our sustainability mission

As a company, TI Fluid Systems is committed
to a sustainable future and improving theenvironmental and social wellbeing of thecommunities we operate in. We strive toprovide a workplace that embraces change,
promotes diversity and inclusion, and supports
the development of our workforce by offering
opportunities for continued education. We arededicated to environmental improvements anddecreasing our global emissions to foster asustainable future. We are committed to working
with our stakeholders to develop products for the
low carbon economy of the future.

Our sustainability strategy
Take the Turn

Technology

At the heart of
our Take the Turnstrategy is productdevelopment andapplication engineering
which supports theelectrification of
the automotive industry. To meet the uniquerequirements of hybrid electric vehicles (HEVs)
and battery electric vehicles (BEVs), the Group
is capitalising on our extensive knowledge of fluid
components, lighter-weight materials, systems
architecture and manufacturing processes toprovide our OEM customers with advanced
designs and products, especially thermal
management systems, which are efficientand cost-effective.

Climate change isa significant issue,
and the need todecarbonise ourindustry is crucial.
The Group iscommitted to being an
automotive industry leader to reduce greenhousegas emissions and build a more sustainable
future. While it is key that our technology andadvanced products support the automotive
industry’s transition to cleaner and greener
electric vehicles, we recognise that we must
transform our business in line with new standards
and expectations of environmental responsibility
to deliver sustainable value to our stakeholders –investors, customers, suppliers, employees andthe communities we operate in.

Talent

The talent of ourworkforce is crucial
to us. The Group’s
success is directly
linked to our ability torecruit, retain, motivate,
educate and develop
a diverse and talented workforce ready for the
new electrified future. In 2021, we introduced
our ‘Fluid Learning’ online learning platform thatprovides every salaried employee with access toa variety of educational and developmental tools
to improve their skills and abilities to be a valuable
and enthusiastic participant in our collaborative
organisation. In 2022, we expanded the use of theonline learning platform and further encouraged
our managers to incorporate this tool into theirteams’ objectives.

Our Core Values
Customers• Ensure our customers are the focus
of our business• Build a foundation for positive,
mutual successCompliance• Comply with all laws applicable to ourbusiness, operations, workforce andproducts• Demonstrate the highest levels of
integrity by embracing our Code ofBusiness Conduct

TI Fluid Systems plc | Sustainability Report 2022

Transformation

Innovation and improvement• Stay ahead of business challenges• Develop new methods and skills toimprove our business• Maintain and strengthen acontinuous improvement culture in allareas of our business

Environment• Encourage the prevention of pollution
and the conservation of resources

Employees• Hire, develop and retain
talented people• Provide a safe, respectful andinclusive working environment• Foster teamwork throughcommunication

Communities• Be a responsible member of ourcommunities• Support local engagement incharitable and other activities that
benefit our communities2Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

Sustainability in the automotive industry

22%

BEVs forecasted CAGR

Lawmakers have made carbon emissions
regulations considerably more onerous in recent
years. Car manufacturers are required to reduce
their carbon emissions during the manufacturing
process and of the vehicles themselves. In thiscontext, the use of alternative powertrains suchas BEVs are expected to play an important role.
Sustainable value chains (based on the principleof reusing and recycling resources) are becoming
increasingly important for the automotive industry.
Car manufacturers and suppliers are considering
how to implement innovative solutions suchas a circular economy, battery recycling,
biodegradable components and sustainable
manufacturing processes.

97.1

96.4

95.1

93.2

92.0

Global light vehicle forecasted
production etc
91.0

The shift to EVs is accelerated by governmental
regulations and changing consumer preferences.
Manufacturers have responded to these trends by

Two of the key transformational issues are
reducing carbon emissions from manufacturing
to address climate change together withsustainability in the value chain.

88.3• Lower carbon footprint for Tier 1 supplier
manufacturing (our Scope 1 & 2) anddownstream supply chain (our Scope 3)

HEVs forecasted CAGR

85.1

• Near-term continuation of ICE programmeswith leverage of ICE assets to support HEVs

11%

Meanwhile, investors and lenders are also
paying more attention: they want to understandthe climate risks faced by car manufacturers
and suppliers and promote more sustainablebusiness practices.

82.4• Long-term shift to BEVs

increasing the number of electric vehicles in theirmix and providing flexible mobility solutions.

77.2

As the automotive industry seeks to address
climate change by transitioning from internal
combustion engines (ICEs) to electric vehicles(EVs), the Group is using its expertise andtechnologies to develop and supply customers
with fluid handling products specifically designed
to meet the requirements of hybrid electricvehicles (HEVs) and battery electric vehicles(BEVs), contributing to a greener and cleaner
environment and making the world a better
place to live.

The automotive industry is transforming into a
more sustainable industry, which is being driven
by three megatrends:

74.6

Transition to electric vehicles
and cleaner ICE vehicles

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

BEV

PHEV

HEV

ICE (including Mild HEV)* Source: S&P Global Mobility Jan 2023
& company estimates

TI Fluid Systems plc | Sustainability Report 2022

3

Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

Sustainability in the automotive industry
Continued

Megatrend: Transition to electric vehicles
Hybrid electric vehicles (HEVs)

HEVs run on both an internal combustion engine (ICE) andan electric motor that uses energy stored in a battery. In theseapplications, the electric motor also provides extra power for
auxiliary systems to allow for a smaller ICE. In addition, thebattery is also able to reduce engine idling when the vehicle
is stopped. In combination, these features create better fueleconomy without sacrificing performance.
Standard HEVs primarily use the ICE to charge the battery but
some also use regenerative braking to charge the battery.
Plug-in hybrid electric vehicles (PHEVs) expand on the conceptof the standard HEV. Like standard HEVs, PHEVs have aninternal combustion engine and a battery-powered electric motor.
However, PHEVs have a much larger battery that is primarily
charged by plugging in. This allows the battery to store enoughpower to run the electric motor for a longer period of time andover a wider range of driving cycles and, in turn, decrease thereliance on the ICE power. PHEVs can travel much longer
distances on electric power alone, rather than the short distancethat a standard HEV can travel on electric power.

What this means for TI Fluid Systems

Traditional vehicles with ICEs typically have two main thermal
management loops. HEVs (including PHEVs) contain traditional
ICE fluid systems but also have additional fluid handling systems(up to six thermal loops) to manage electrification-related
component temperatures, including chassis, power electronics,
electric motor drive and the battery. These thermal management
systems typically include fluid lines, manifolds and connectorsthat the Group produces as well as pumps, sensors, valvesand other mechatronics that the Group is seeking to add to its
product portfolio through collaborative sourcing, joint ventures
and acquisitions.

Battery electric vehicles (BEVs)

BEVs use an electric motor powered by an onboard battery anddo not have ICEs. Instead of fuel, these vehicles run solely on
battery power. Drivers can charge them at home or at charging
stations. Removing the ICE opens up the packaging space formore battery capacity, thus resulting in a longer range for thevehicle on a single charge than a hybrid vehicle.

What this means for TI Fluid Systems

Autonomous electric vehicles (AEVs)

AEVs use sensors, cameras, radar and artificial intelligence (AI)
together with BEV technology to transport passengers more
efficiently, without the need for drivers or fossil fuel driven ICEs.

What this means for TI Fluid Systems

AEVs increase the requirement of thermal lines as more
electronic components are needed, which require cooling.

BEVs are expected to have additional thermal management
loops. Based on recent platform launches, we expect
significantly higher line and tubing content than traditional ICEs,
depending on vehicle size and system design. In addition, we
expect EV thermal management systems will become more
efficient and lighter through increasingly modular designs that
include integrated manifolds which the Group produces using
its blowmoulding capabilities. Furthermore, OEMs will work with
suppliers to design and integrate mechatronics (pumps, valves,compressors, etc.) into thermal management systems.
As the thermal components and systems in BEVs may not be
exposed to the same heat generated by ICEs, the systems may
contain different materials, such as plastic, to help optimise
system weight, temperature and pressure.
Plastic lines have an approximate 30–60% weight advantage
compared to rubber and aluminium lines. Therefore, plastic
lines would reduce vehicle weight and help to extend battery
life (required for extended driving range) of EVs. The Group hasexisting material ‘know-how’ in plastic and aims to utilise its
existing industrialised capacity to support plastic usage.

In addition to increased thermal management requirements, theGroup produces fuel tank systems for HEVs (and PHEVs) that
can accommodate increased fuel vapour pressure that builds up
when the ICE is not operating and cannot purge the fuel vapour.

TI Fluid Systems plc | Sustainability Report 2022

4

Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

Sustainability in the automotive industry
Continued

Megatrend: Reducing ICE emissions
Megatrend: Lighter EVs
Reducing exhaust emissions

To address climate change, governments have adopted
requirements focused on reducing exhaust emissions fromautomobiles, some including a phase-out of sales of new ICE
vehicles over an extended period. Some developed markets
have mandated CO2 emission reductions, with emerging markets
increasingly following.

What this means for TI Fluid Systems

OEMs have sought to introduce higher pressure fuel systems
and turbochargers to improve the efficiency of the combustion
reaction in an engine to achieve lower exhaust emissions.
Our product offering includes products that optimise theefficiency of the ICE process, including gasoline direct injection(GDI) fuel rails, fuel pumps and turbocharger engine lines.
For example, we design, engineer and manufacture efficient fuelpumps so an ICE vehicle will burn less fuel and reduce the levelof CO2 emitted into the environment.

Reducing evaporative emissions

Evaporation of fuel while stored in the fuel tank has been asource of hydrocarbon emissions from permeation throughwalls and various other components on the tank. Regulations
now require OEMs to reduce these evaporative emissions fromautomotive fuel systems.
For example, in California, USA, low emissions vehicle (LEV)
standards dictate the evaporative emissions thresholds that
OEMs are required to achieve. LEV II standards, which came into
effect in 2004, lowered emissions thresholds by approximately
75%. LEV III standards, which are expected to be phased inover the next decade through to the 2025 model year, require a
reduction of 30% in the emissions threshold from 2010 levels.
Similarly, the European Union established an emissions target
in 2021 that requires an evaporative emissions reduction of
27% from 2015 levels. In addition, China has introduced its
Beijing-6 evaporative emissions targets similar to California’s
LEV II standards.

Reducing vehicle weight to increase
EV range

Range is a key selling point for many EVs and can be enhanced if
there is less weight to move. The EV battery is a significant heavy
component within a vehicle and there is a focus on solutions on
the other elements of the vehicle to offset this weight and thus
improve the range.

What this means for TI Fluid Systems

With lower engine bay temperatures, this provides an opportunity
to replace heavy metal and rubber tubing with plastic tubing.
We have expertise in manufacturing plastic tubing for fluid
handling and have innovative applications in EV products. We
also produce heat pumps that take waste heat and recycle itfor heating the cabin that would otherwise use energy from thebattery, thus improving range.

What this means for TI Fluid Systems

We have specific technology in our plastic fuel tanks to reduce
evaporative emissions. The six-layer wall structure includes abarrier layer to capture the hydrocarbons and prevents them frombeing emitted into the environment.
We are the only supplier with a fully integrated design,development, manufacturing and supply capability for the fueltank system.

TI Fluid Systems plc | Sustainability Report 2022

5

Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

Development of our sustainability approach
UN Global Compact
Our progress:
Environmental• Joined the UN Global Compact• Calculated and published our Scope 3
emissions inventory• Adopted updated, science-based GHG
emissions reduction targets• Public disclosure to CDP• Set water conservation targets• Increased renewable energy use

Social• Diversity and inclusion (D&I)
committees and working groups formed
and meeting regionally• Developed D&I targets• Expanded our inclusivity assessments
to the next level of management• Enhanced our recruitment policies tolimit unconscious bias
• Expanded our safety management
system and had it certified by athird party

Governance• Added a formal ESG Steering
Committee

TI has a long history of supporting theten principles that are the foundation of theUnited Nations Global Compact.
1. We support and respect the protection ofinternationally proclaimed human rights
2. We have a strong Code of Business Conductthat assures we are not complicit in humanrights abuses
3. We uphold the freedom of associationand the effective recognition of the right tocollective bargaining
4. We do not accept any form of forced andcompulsory labour
5. We do not accept any child labour
6. We actively support the elimination of
discrimination in respect of employment
occupation

Scope 3 GHG reporting

Accreditations

Similar to most other manufacturing companies,
not all of the Scope 3 categories are applicableto our business. For our operations, the following
categories were determined to be not applicableor optionally reportable: Processing of soldproducts, Use of sold products, Downstream
leased assets, Franchises, and Investments.

TI has furthered its commitment to environmental
transparency by disclosing its environmental impact
through CDP for the second year running.

Using data from calendar year 2021, wedeveloped a baseline Scope 3 emissions
inventory based on the GHG Protocol. Ourevaluation covered all 15 categories as definedin the GHG Protocol Corporate Value Chain(Scope 3) Accounting and Reporting Standard.

Using the same methodology we have completed
our 2022 Scope 3 emissions inventory.

7. We support using a precautionary approachto environmental challenges
8. We promote and undertake initiatives thatdrive greater environmental responsibility
9. We encourage the development and use ofenvironmentally friendly technologies
10. We are committed to anti-corruption byworking against corruption in all its forms,
including extortion and bribery
We submitted our application to become
members of the UN Global Compact in 2022,
and in 2023, we were formally recognised as asignatory member. We will be completing our
first communication on progress in 2023.

Purchased goods and services
Capital goods
Fuel and energy-related activities
Upstream and downstream support (combined)
Waste generated in operation
Business travel
Employee commuting
Upstream leased assets
End of life of sold products

TI Fluid Systems plc | Sustainability Report 2022

6

Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

Development of our sustainability approachContinued

CASE STUDY

SBTi target setting, energy efficiency, andrenewable energy opportunity assessment
In 2022, we established a plan
to evaluate updating our GHG
reduction targets consistent with
the Science-Based Target Initiative(SBTi). In early 2023, we adopted ourrevised targets: a 50% reduction in
Scopes 1 and 2 and a 30% reductionof Scope 3, in each case by 2030
from a 2021 baseline.
Our work in 2022 involved completing an
updated greenhouse gas (GHG) emission
inventory, including the development of Scope
3 emissions. We worked with our external
consultant to evaluate the renewable electricity
market in the countries that we operate in.
Additionally, we completed a robust survey ofour manufacturing locations to evaluate energy
conservation opportunities.
With our updated emissions inventory webegan the process of determining the required
emissions reductions to qualify for an SBTi target.
Our Scope 3 emissions make up over 70% of our
total emission and, as such, require that we also
set a formal Scope 3 target to qualify for SBTitarget approval.

TI Fluid Systems plc | Sustainability Report 2022

Once we understood the magnitude of therequired reduction needed to meet the SBTi
1.5°C targets we worked with our consultants toevaluate the potential energy savings available inour manufacturing locations. Our management
and plant teams worked in concert to completea very detailed survey to define potential
energy-saving opportunities across the various
types of manufacturing sites that we operate.
Simultaneously, we evaluated renewableelectricity opportunities in the vast majority of thecountries that we operate in. This information
was coupled with our projected growth over the
next eight years to build a predictive model for thecosts required for us to meet the SBTi target.
We presented a proposed SBTi target of a 50%
reduction in Scopes 1 and 2 and a 30% reductionin Scope 3, in each case by 2030 from a 2021
baseline. We highlighted the expected costs tomeet the target to the ESG Steering Committee
and the Board in the first quarter of 2023. The
Board approved the reduction targets that alignwith, and can be approved by, the SBTi.
The application has been completed andsubmitted to the SBTi for official validation.

7

Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

Development of our sustainability approachContinued

CASE STUDY

e-Mobility Innovation Centre
We opened our first e-Mobility
Innovation Centre (e-MIC),
in Rastatt, Germany in April 2022

In addition to the significant improvementin overall development cycles, the e-MIC
building itself includes a number of enhanced
sustainability features.

This collaborative space:

Our building• Facilitates the next generation of design,
prototyping, and testing of thermal
management systems and components
for electric vehicles• Provides a ‘one-stop shop’ for customers,
helping develop products and allowing us tobring the engineered designs to the market
more efficiently
The Rastatt e-MIC is the first of five to open
across Asia, Europe and North America
throughout 2022 and 2023 as a key part of theCompany’s Take the Turn strategy.
The unique collaborative environment comprises
six core competencies: virtual engineering,
design, processing, prototyping, producttesting, and vehicle testing. This means that
our engineers can efficiently design, develop,
simulate and visualise thermal management
systems and components for EVs, all under
one roof.

• The Rastatt e-MIC uses 100% renewableelectricity and green gas• Low energy consumption bulbs (LEDs)
have been installed across the entire
engineering facility• An innovative irrigation system with weather
reactive control units outside adjusts water
usage consumption and also helps us
manage costs

Design & Development
Designing

Engineering

Prototyping

Testing

Manufacturing
GlobalFootprint

Quality
Systems

VerticalIntegration

Experienced
Management

SafetyWaste
Elimination

EnergyEfficiency

Water
Conservation

CO2(e)
Reduction

Supplier
Management

DeliveryJust-in-time
Systems

Logistics

Returnable Racks/
Containers

Customer Support

A sustainablebusiness thatcreatesvalue for all
stakeholders

TI Fluid Systems plc | Sustainability Report 20228

Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

Development of our sustainability approachContinued

Our employees:• Our hybrid working model allows highutilisation of our office environment and spacefor our engineering teams• Ergonomically equipped workplaces havebeen installed throughout the entire facility,
including sustainably built chairs and heightadjustable desks• New optimised lighting for the workplace
was installed• Standardised IT equipment reduces
maintenance activities and related CO2(e)emissions• Desk sharing scheme has allowed our
employees to sit in different areas related totheir current project work/team connection• Open space environment is used by all
departments ensuring that there is close
collaboration and good communication
channels• Cafeteria and coffee stations have been
designed with sustainability in mind
• More than 30 charging stations have been
provided for employees to recharge electricvehicles• We have changed our company car policy tolimit CO2(e) emissions and our new policy only
permits leasing of HEV/BEV vehicles

Product development:• 3D simulation tools are used to model the
product development at an early stage with ahigh accuracy. This reduces the time, effort,
and unnecessary prototyping. Up to a 30%
time saving can be realised using our 3D
simulation tools• All product development is designed based on
the lowest material input required which further
minimises our CO2(e) footprint• Projects have been initiated which are focusedon recycling, regrinding and the use of organic
material to minimise waste• Product development is focused on optimising
the CO2(e) footprint of the product throughmodularisation. Benefits include weight
reduction, improved space efficiency and lessassembly work required by the customer

Our Take the Turn strategy
empowers TI Fluid Systems tonavigate the largest shift the
automotive industry has everseen. The Rastatt e-Mobility
Innovation Centre embodies
our mission to embrace change,
prioritise strategic thinking andencourage innovation across ourglobal business.
Working closely with manyof the world’s largest vehicle
manufacturers, we have a
deep appreciation of the needto provide our clients with aone-stop shop to meet their fluid
innovation needs. Our uniqueglobal centres will do just that– cementing TI Fluid Systems’position as a trusted thermal
management technology partner
for OEMs all over the world.
Hans Dieltjens
President and CEO

TI Fluid Systems plc | Sustainability Report 2022

9

The GroupTI Fluid Systems plc | Sustainability Report 2022

In this section

Geographical footprint

11

Organisational structure

12

Product offering

13

10Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendixGeographical footprint

28
Countries

Significant amount of revenue generated fromglobal OEM platforms (i.e. platforms produced inthree or more regions)
Footprint includes regional manufacturing
centres and assembly locations near customers
that provide logistics competitiveness andcustomer service

TI Fluid Systems plc | Sustainability Report 2022

98

Manufacturing locations

Facilities in every major automotive
manufacturing market
Well positioned through the global manufacturing
footprint to cost effectively expand fluid handling
content, business and infrastructure to OEMs
transitioning to the EV market

11Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

Organisational structure
TI Fluid Systems plc

Fluid carrying systems

Fuel tank and delivery systems

Products include: brake and fuel lines and bundles, thermal
management fluid systems (including HEV and BEV heating andcooling lines), powertrain components and quick connectors.

Brake and fuelWe design and manufacture a wide rangeof multilayer low-permeation plastic tubes,
high-pressure steel double-wall and single-walltubes and a variety of quick connectors andflexible lines.

Thermal products

We develop a variety of thermal management
products. This includes traditional aluminium
air conditioning lines, modern multilayer plastic
tubing, rubber lines, battery cooling lines, andthermal modules.

Powertrain products

We develop and produce powertrain
products that help to improve fuel economy.
These include gasoline direct injection andhigh-pressure diesel systems, as well as coolingand lubrication systems for turbochargers.

TI Fluid Systems plc | Sustainability Report 2022

€1,869.7m
Revenue

20,100
Employees

Products include: plastic fuel tanks, filler pipes, vent lines, fuel pumps
and modules.

Fuel tanks

We develop and manufacture award-winning
fuel tank systems for diesel, petrol, flex-fueland hybrid vehicle applications. We have
revolutionised the production of plastic fueltanks through our ship-in-a-bottle (SIB) andtank advanced process technology (TAPT)
manufacturing methods. Our fuel tanks improvefuel system performance and are engineered
for a wide range of packaging options, reduced
evaporative emissions and low weight.

€1,398.6m
Revenue

5,500
Employees

Fuel pumps

Our pumps and modules for petrol, diesel
and flex-fuel vehicles are designed for quiet,
efficient, low-voltage performance and durability.

Aftermarket products

The Group has been manufacturing fuelpumps for decades. We manufacture
drop-in fuel pumps and modules for theaftermarket segment.

12

Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

Product offering
Internal combustion engine (ICE) vehicle

Battery electric vehicle (BEV)

10

9

6
4

11
2

2
1

3

1

3

8

4

Hybrid electric vehicle (HEV)

5

Autonomous electric vehicle (AEV)
10

9

4

12

6

6

2

2
8

1
3
8

5

TI Fluid Systems plc | Sustainability Report 2022

4

7
3

1
5

4

13

Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

Product offering
Continued

Fluid carrying systems (FCS)

Fuel tank and delivery systems (FTDS)

The FCS division manufactures brake lines, fuel lines, brake and fuel bundles,
A/C lines and assemblies, battery coolant lines and thermal management modules.

The FTDS division manufactures plastic fuel tanks, plastic filler pipes andelectric fuel pumps and modules.

1

Under-Hood Thermal
Rubber Lines

2

A/C Cabin Climate
Control Lines

3

Brake and Fuel Bundle
Assembly

94

Brake Bundle Assembly5

Chassis Thermal Plastic
Manifolds

6

Battery Thermal Plastic Lines
and Connectors

11 ICE Plastic Fuel
Tank Assembly

7

Autonomous Vehicle Thermal
Plastic Lines8

Integrated Thermal Manifold
1.2 (ITMa)TI Fluid Systems plc | Sustainability Report 2022

Brushless Fuel Pump Modulewith Electronics

10 Plastic Fuel Filler Pipe andEmissions Vent Line

12 HEV Pressure-Resistant Fuel
Tank Assembly14Sustainability
approach

TI Fluid Systems plc | Sustainability Report 2022

In this section

Stakeholder engagement

16

Material issues

18

Our sustainability strategy

21

Alignment with the UN SDGs

22

Sustainability metrics

24

15

Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

Stakeholder engagement on sustainability
Engaging with stakeholders is central to our corporate purpose and strategy
to achieve the long-term success and sustainability of our business.

Stakeholder

Why we engage

Interests of the stakeholder

How we engage

Outcomes

Shareholders• Quality of governance• Climate technology that limits GHG
emissions, GHG emissions reductions,net zero, privacy and social impact• Investor meetings• Adopted updated, science-based
GHG emissions reduction targets• Effectiveness of the Board andmanagement• Growth potential and profitability• Share price appreciation

Employees• Board diversity• Completion of shareholder survey
requests• Capital markets events• Dividends• Corporate governance• Good communications improves
motivation, morale and productivity• Safe work places• Surveys• Commitment to environmental
stewardship• Regular newsletters and bulletins• Social concerns• Management engagement• Fosters retention and reduces
employee turnover• Identify issues and solutions quickly• Identify needs for resources andsupportCustomers• Diversity, inclusion and equity• Annual reporting• Executive compensation• Diversity and inclusion• All-employee meetings• Diversity Committees• Inclusivity assessments and training• Drive revenue growth andbusiness success• Using partners with good safety records• Customer meetings• Identify sourcing opportunities• GHG reduction• Surveys• Net zero

• CDP

• Renewable energy programmes• Ecovadis• Align product and technology
development with customer needs• Effectively and efficiently address
any supply or quality issues• Implemented a range of greenhousegas reduction initiatives in line withstakeholder expectations, including
our OEM customers• Circular economy• Recycling• Safe, high-quality parts• TI established programmes tosupport diverse hiring in line withlocal graduation rates• Employee engagement on
D&I events• Expanded ISO safety
management scheme• Opened first of five e-MICs
to support development ofthermal management products
in collaboration with our OEM
customers to support ongoingtransition to more efficient HEVs
and BEVs• Better GHG reporting, including
CDP reporting• Adopted updated, science-based
GHG emissions reduction targets

Continue on next page.
TI Fluid Systems plc | Sustainability Report 2022

16

Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

Stakeholder engagement on sustainability
Continued

Stakeholder

Why we engage

Interests of the stakeholder

How we engage

Outcomes

Community• Promote our reputation as a
responsible and ethical business• Clean air, water and land

• Our global facilities seek to be a
responsible member of its local
community• Provided support for various
charitable functions in ourcommunities• Strive to consistently operate ourbusiness that minimises our impact
on the environment through energy
efficiency, waste reduction andconservation of resources• TI funds annual scholarships
in each major region to support
women in STEM studies as well as
local internship opportunities forrecipients• Attract, motivate and retain
employees• Conserve resources and reduce our
impact on the environment to ensure
we are a sustainable business• Fair and equitable treatment with respect
to labour practices• Community support• Good corporate citizens• Expansion of our EHS group has
improved our processes to measure,report and assess our greenhousegas emissions and the environmental
impact our operations have on the wider
community• Our Code of Business Conduct includes
policies to enhance our reputation for
excellent business conduct, including
anti-corruption, anti-bribery, faircompetition (anti-trust), and positive
work environment and inclusion (antidiscrimination and anti-harassment)

Suppliers• Build strong, collaborative andstrategic relationships to obtaincompetitive pricing, quality
products, reliability of supply, andlogistics efficiency• Ensure we have access to advanced
materials and components thatmeet our technical requirements• Ensure responsible sourcing andethical business practices andconduct by our supply base

TI Fluid Systems plc | Sustainability Report 2022

• GHG emissions• Fair sourcing practices• Ethical business practices• Our purchasing organisation has
regular, extensive contact with our
suppliers regarding quoting and sourcing
opportunities, delivery logistics, andquality controls and testing• Produced several global suppliermanuals, policies and provisions
to ensure fair and ethicalbusiness practices• Our engineering organisation works
closely with suppliers on development
activities, validation testing and cost
reduction initiatives (value engineering)• Our business and complianceexpectations is in our global supplierrequirements manual, on our dedicatedsupplier portal and in our purchasing
terms and conditions

17

Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

Material issues
Materiality assessment process
STAGE

1

STAGE

2

STAGE

3

STAGE

4

STAGE

5

Identifying internal and external stakeholders

Engaging with, and giving consideration to, thesestakeholders is central to our corporate purpose andstrategy to achieve the long-term success and sustainabilityof our business.

Identifying and prioritising key ESG issues

We utilised the ESG Risk Ratings definitions of material
ESG issues and Corporate Governance guidance, by
Sustainalytics, to develop our key issues assigned to
ESG categories.

Internal stakeholder outreach

We conducted an employee engagement and culture
survey and held all-employee meetings and calls throughout
the year.

Reviewing external stakeholder ESG requests andexpectations

We reviewed the results from shareholder, customer, supplierand community engagement

Creating materiality matrix

The ESG sub-categories were assigned a score of 1–10
based on our internal assessment.

TI Fluid Systems plc | Sustainability Report 2022

STAGE 1: Identifying internal andexternal stakeholders

Our key stakeholders consist of our shareholders,customers, employees, suppliers and community.
Engaging with, and giving consideration to, thesestakeholders is central to our corporate purpose
and strategy to achieve the long-term successand sustainability of our business. In doing so, weare considering the:• likely consequences of any decision in thelong term;• interests of employees;• importance of authentic relationships with
suppliers, customers and others;• impact of our operations on the communityand environment;• desirability of maintaining our reputation forhigh standards of business conduct; and• need to act fairly
Internal stakeholders were identified as:
employees, management and the Board.
External stakeholders were identified as:
shareholders, customers, suppliers andcommunities we operate in.

STAGE 2: Identifying andprioritising key ESG issues

We utilised the ESG Risk Ratings definitions ofmaterial ESG issues and Corporate Governanceguidance, by Sustainalytics, to develop our key
issues assigned to ESG categories.

Key environmental sub-categories:

1. Emissions – Effluents focuses on the
management of emissions and releases froma company’s own operations to air, water andland, excluding GHG emissions.
2. Carbon – Own Operations Carbon refers
to a company’s management of risks related
to its operational energy use and GHG
emissions (Scope 1 and 2). It also includes
parts of Scope 3 emissions, such as transportand logistics. It does not include emissions inthe supply chain or during the use phase/endof-life cycle of a product.
3. Carbon – Products and Services Carbon
refers to a company’s management of theenergy efficiency and/or GHG emissions of its
services and products during the use phase.
4. Impact of Products and Services refers to
the management of environmental or social
impacts of products or services, including
inherent characteristics of input materials,
both positive and negative, and impacts
during use, disposal and recycling.
5. Land Use and Biodiversity focuses on
how companies manage the impact of theiroperations on land, ecosystems and wildlife.
Topics covered include land conversion, land
rehabilitation and forest management, and theprotection of biodiversity and ecosystems.
6. Land Use and Biodiversity – Supply Chain
focuses on how companies manage theimpact of their suppliers’ operations on land,
ecosystems and wildlife.

18

Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

Material issues
Continued

7. Resource Use focuses on how efficiently andeffectively a company uses its raw material
inputs (excluding energy and petroleumbased products) in production and how it
manages related risks.
8. Resource Use – Supply Chain focuses on
how efficiently and effectively a company
manages risks related to raw material inputs(excluding energy and petroleum-based
products) within its supply chain.
9. Water Use focuses on water scarcity and how
effectively a company uses its water supply.
10. Waste Management focuses on thegeneration and management of hazardousand non-hazardous waste, including waste
minimisation and recycling.

Key social sub-categories:

1. Community Relations focuses on how
companies engage with local communities(including indigenous people) throughcommunity involvement and development,
and/or measures to reduce negative impacts
on local communities.
2. Data Privacy and Security focuses ondata governance practices, including how
companies collect, use, manage and protect
data. The emphasis is on measures to ensure
safe and secure use and/or maintenance ofcustomers’ personally identifiable data.

4. Human Rights – Supply Chain focuses on
a company’s management of fundamental
human rights issues occurring in its
supply chain. For subindustries that rely
on conflict minerals, this also includes acompany’s handling of conflict minerals in its
supply chain.

Key governance sub-categories:

5. Human Capital focuses on the managementof human resources. It includes the
management of risks related to scarcity
of skilled labour through retention andrecruitment programmes, and includes
career development measures suchas training programmes. Additionally, it
includes labour relations issues, such as
the management of freedom of associationand non-discrimination, working hours andminimum wages.

2. Business Ethics focuses on the
management of general professional
ethics, such as taxation and accounting,anti-competitive practices and intellectual
property issues. Business Ethics includes
bribery and corruption, which focuseson the management of risks related toalleged or actual illicit payments, such as
kickbacks, bribes and facilitation payments
to government officers, suppliers or otherbusiness partners, as well as the receiptof those payments from suppliers orbusiness partners.

6. Occupational Health and Safety focuseson the management of workplace hazards
affecting a company’s employees andon-site contractors.

1. Corporate Governance comprises
six pillars: Board/management quality
and integrity; Board structure; ownershipand shareholder rights; remuneration;
audit and financial reporting; andstakeholder governance.

STAGE 3: Internal stakeholder
outreach

We conducted an employee engagement andculture survey in North America, and held allemployee meetings and calls throughout theyear to provide updates on the business, such as
our COVID-19 response, financial performance,
leadership changes and strategic objectives. Our
designated Non-Executive Director for workforce
engagement attended these all-employee
meetings, and reviewed our survey results,
employee feedback and whistle-blower reports.
In addition, we held several top-level
management meetings to review our Take
the Turn strategy, including reviewing andincorporation of management input and ideas on
our technology and products, sustainability andlearning initiatives.

7. Product Safety focuses on how companies
manage their responsibilities regarding
clients (quality and/or safety of their products
and services). Emphasis is on quality
management systems and product safety.

3. Human Rights focuses on how companies
manage and respect fundamental humanrights within their own operations. Emphasis ison measures taken to protect civil and politicalrights, and economic, social and culturalrights, including child and forced labour.

TI Fluid Systems plc | Sustainability Report 2022

19

Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

Material issues
Continued

Shareholder engagement included:• Executive Directors, supported by our investor
relations team, had numerous interactions withthe shareholders that represent over 80% of
our shareholder base (by shareholding value);• Our Executive Vice Presidents, CCO and CEO
communicate directly with customers’ senior
executives regarding significant commercial
matters and strategic initiatives;• Our customers provide us with their clear
communication regarding ESG-related
expectations and requirements; and• Our reporting on several key ESG-related
metrics to customers through third parties like
CDP, Ecovadis, Open-es and NQC• The annual Capital Markets Event was held in
April 2021 and the next one will take place in
2023, which provided an in-depth review of ourbusiness model, strategy and product portfolio
to all shareholders;

Supplier engagement included:• Our Remuneration Chair met with our
top 20 shareholders to gain their input on
our remuneration practices and policies.
One element of our remuneration practice
is our long-term incentive programme.
This programme incorporates several
ESG concepts designed specificallyto reward the management team forachieving key Environmental and Social
improvement targets;• Our engineering organisation works closelywith suppliers on development activities,
validation testing and cost-reduction initiatives(value engineering); and• The two Non-Executive Directors who
represent the Bain shareholders attend andactively participate in our Board meetings; and• All shareholders are regularly informed of theperformance of the business through trading
updates in January, May and November, half
and full-year announcements in August andMarch, and our full annual report in April

Customer engagement included:• Extensive and regular contact with our OEM
customers at all organisational levels andregions regarding sourcing, commercial
matters, product performance and quality,
programme launches, and development andplanning of new products;

TI Fluid Systems plc | Sustainability Report 2022

• Our purchasing organisation has regular,
extensive contact with our suppliers regarding
specific quoting and sourcing opportunities,
delivery logistics and quality controls
and testing;• Our compliance expectations and how to dobusiness with us are communicated throughour global supplier requirements manual,
dedicated supplier portal and purchasing terms
and conditions

Community engagement included:• Striving to consistently operate our businessin a manner that minimises our impact on theenvironment through energy efficiency, waste
reduction and conservation of resources;• Expansion of our EHS group has improved
our processes to measure, report and assess
our greenhouse gas emissions and theenvironmental impact our operations have on
the wider community;

STAGE 5: Creating materiality
matrix• Individual plants have membership on many
community-related forums, which allows our
local teams to selectively support causes
and initiatives that are important for their local
communities. We believe that this drives better
engagement for our team members in theirlocal communities; andThe ESG sub-categories were assigned a scoreof 1–10 based on our internal assessment of
the information we have compiled from various
sources, which was then put into a graph. As
these results are commercially sensitive, wewill not be publishing these. Here is an exampleof how the graph looks; the X-axis represents
material importance from internal stakeholders,
and the Y-axis represents material importancefrom external stakeholders.

• We participate in charitable donation
programmes

Materiality matrix
10
2

9

16

17
4 13 19 3

8
External material importance

STAGE 4: Reviewing external
stakeholder ESG requests
and expectations

7

7

6

1
8

5

12 18
9

4

10

14

Social
11. Community relations
12. Data privacy and security
13. Human rights
14. Human rights – supply chain
15. Human capital
16. Occupational health and safety
17. Product safety

15

11 5

3
6

2
1
0

2

4

6

Environmental
1. Emissions – effluents
2. Carbon – own operations
3. Carbon – products and services
4. Impact of products and services
5. Land use and biodiversity
6. Land use and biodiversity – supply chain
7. Resource use
8. Resource use – supply chain
9. Water use
10. Waste management

8

10

Governance
18. Corporate governance
19. Business ethics

Internal material importance20

Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

Our sustainability strategy
Take the Turn

Our Take the Turn strategy
addresses the transitional risks
and opportunities associatedwith vehicle electrification, as
well as the need to operate abusiness in a more sustainable
manner to address climatechange and maintain a diverse
and talented workforce.
We have further refined ourTake the Turn strategy to reflect
three main pillars that combine
to drive sustainable growth:Technology (Electrification),Transformation (Sustainability)
and Talent (Learning).

PillarTechnology

Transformation

Description

Material issues

Our pipeline/targets

At the heart of our Take the Turn strategy is productdevelopment and application engineering to support
the electrification of the automotive industry. To
meet the unique requirements of HEVs and BEVs,
we are capitalising on our extensive knowledge of
fluid components, lighter weight materials, systems
architecture and manufacturing processes to provide
our OEM customers with advanced designs andproducts, especially thermal management systems,
that are efficient and economical. Our technology
and advanced products are supporting theautomotive industry’s transition to greener vehicles.

Environmental

Bookings on lifetime revenue basis in 2022

Climate change is a significant issue, and theneed to decarbonise our industry is crucial. We arecommitted to being an automotive industry leader toreduce greenhouse gas emissions and build a moresustainable future. We recognise that we must alsotransform our business in line with new standards
and expectations regarding the environment andbroader business practices to deliver sustainablevalue to our stakeholders – investors, customers,
suppliers, employers and the communities we
operate in.

Environmental• Impact of products andservices• Carbon – products andservices• Resource use

Social• Product safety• Emissions – effluents• Carbon – own
operations carbon• Land use and biodiversity• Water use – particularly
scarcity• Waste management

Social• Community relations• Data privacy and security

Governance€1.3bnHEV€1.3bnBEV

Greenhouse gas emissions* – 2030 targets• 50%% reduction of our Scope 1 and 2 emissions
and 30% reduction of our Scope 3 emissions, ineach case compared to 2021 levels on a like-forlike basis
Water conservation – 2030 target• FCS Process Plants: 25% reduction from 2020
baseline (3.00% annual reduction)• FCS Thermal Plants: 10% reduction from 2020
baseline (1.25% annual reduction)• FCS Systems, FTDS Pump and FTDS Tank Plants:change to 100% low-flow fixtures by 2030

• Corporate governance• Business ethics

TalentTI Fluid Systems plc | Sustainability Report 2022

Our success is directly linked to our ability to recruit,retain, motivate and develop a diverse and talented
workforce ready for the new electrified future. In 2022,
we embraced our ‘Fluid Learning’ online learning
platform that provides every salaried employeewith access to a variety of relevant educational anddevelopmental tools to improve their skills and ability
to be a valuable and enthusiastic participant in ourcollaborative organisation.

Social• Human rights• Human capital• Occupational healthand safety• Targeting diversity hiring rates that are in line with or
greater than the available candidate pool, measured
by national university graduation rates for women• Ensure middle management is assessed for andprovided training on inclusivity, as a fundamental
management style to ensure our diversity initiatives
are sustainable and embraced by the organisation• In 2022 our global gender split improved to 2.3/1.0(male to female)21

Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

Alignment with the UN SDGs
Our purpose andsustainability focus
aligns with many United
Nations Sustainable
Development Goals(UN SDGs).

SDG

Description

Alignment with our sustainability approach

Ensure healthy lives andpromote wellbeing for all at
all ages

We have committed to having all manufacturing locations certified to ISO 45001, aninternationally recognised safety management system. Since adopting this in 2021,
we have aggressively expanded this certification effort. More than half of our locations
were certified by the end of 2022, and we expect all locations to be certified by 2024.
At various locations, we promote a variety of health-related programmes, including
mobile vaccination clinics, mammogram screening and other wellness programmes.

UN Global Compact
We have employed the ten
principles of the UN Global
Compact for several years.

Link to strategy

Ensure access toaffordable, reliable,
sustainable and modern
energy for all

We are actively pursuing renewable energy in our markets. Where appropriate, we arecommitting to adaptive energy projects to bring more renewable energy to the grid;for example, our MI GreenEnergy commitment in Michigan with DTE where we havecommitted to purchasing 100% renewable energy from them for a ten-year period.
Our support assists with building solar fields to provide a new source of solar powerfor Michigan.
We have adopted updated GHG reduction targets in line with a 1.5°C model andconsistent with the SBTi Science Based Targets initiative.

Ensure sustainableconsumption andproduction patterns

We are tracking water use in the manufacturing locations that we operate in.
We have programmes to promote inclusive sourcing in the supply chain, including
women-owned businesses.
We actively track and report on conflict minerals.

Achieve gender equality
and empower all females

We have contracted an outside consultant to provide assessments and training on
unconscious bias in order to promote a more inclusive business environment, particularly
for our female workforce.
We have developed formal diversity and inclusion committees in all operational regions topromote diversity and inclusion.
We are actively looking at developing a STEM (science, technology, engineering andmathematics) scholarship programme aimed at school-age girls.

Continue on next page.
TI Fluid Systems plc | Sustainability Report 2022

22

Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

Alignment with the UN SDGs
Continued

SDG

Description

Alignment with our sustainability approach

Ensure available andsustainable management ofwater and sanitation for all

We have set water conservation targets for our business groups.

Take urgent action tocombat climate change andits impacts

We have adopted updated GHG reduction targets in line with a 1.5°C model andconsistent with the SBTi Science Based Targets initiative.

Link to strategy

We continue to provide strong leadership and stewardship of our water resources.
Where we treat water and return it to rivers or local sewerage systems, we do so by
meeting the effluent limitations set out by local government.

We are working on a long-term strategy for the purchase of renewable energy in
our markets.
We are developing an energy efficiency plan for the organisation.

Conserve and sustainably
use the oceans, seas
and marine resources forsustainable development

TI Fluid Systems plc | Sustainability Report 2022

We meet or exceed all effluent requirements for discharge to sanitary sewage systems
and, in limited cases, rivers. Clean fresh water is vital in assuring that estuaries andoceans provide healthy food sources.
As we procure transportation, we will assess vendors with lower carbon transport for
oceanic transportation needs.

23Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

Sustainability metrics
Scope
1 emissions
2018
00%
39,170

2019
2020
2021
2022

30,68027,76330,383Global Scope 1 emissions (CO2(e)T)

Gender diversity
M

Percent
Men

CEO

1

100%

Executive Committee

788%

At 31 December 2022

Direct Reports to Executive Committee

Scope
2 emissions
2018
00%
2020

235,9472021

230,279

2022

229,185

Global Scope 2 emissions (CO2(e)T)

Total
consumed (kWh)2018 energy
00%
2020

526,434,728
457,404,458

2021

485,749,751

2022

498,613,698

2022

4.6

% of energy consumed that is fromrenewable sources

TI Fluid Systems plc | Sustainability Report 2022

Percent
Women

Grand
Total

1

13%

8

1

43

75%

14

25%

57

Other Salaried

2,781

68%

1,280

32%

4,061

Grand Total

2,832

69%

1,295

31%

4,127

267,913

2019

2019

F

€1.3bn 73%
2022

BEV products lifeline revenueof our salaried staff took voluntary learningand completed 5,400 certifications

2022

2022

Temporary employee, contractor
and visitor recordable injury
frequency

Employee, contractor and visitor lost time
injury frequency

2.65

1.96
2021

2020

2019

1.75 1.67 2.87

24

Environment

TI Fluid Systems plc | Sustainability Report 2022

In this section

Carbon – own operations

26

Carbon – products and services

28

Water use

29

Waste management30

25

Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

Carbon – own operations
Carbon – own operations refers
to a company’s management ofrisks related to its own operationalenergy use and GHG emissions(Scope 1 and 2).

Our ambition

In 2022, we engaged Schneider Electric to assist
us to develop updated, GHG emissions reduction
targets in line with a 1.5°C model and consistent
with the SBTi Science Based Targets initiative.
As a result of the work in 2022, we adopted
updated targets in March 2023. Specifically, ournew goal is to achieve a 50% reduction of our
Scope 1 and 2 emissions by 2030 compared to2021 levels on a like-for-like basis. In addition,with support from Schneider Electric, we also
developed renewable electricity and energy
efficiency plans to support achievement of our
new targets.
We have submitted our new targets to SBTi forvalidation.
We look forward to communicating approval of
our target from SBTi.

Link to SDGs

Reduction in energy consumption

Energy intensity

One of the pillars of our GHG reduction
strategy is the reduction of energy consumption
across our manufacturing footprint. In 2022
we started an energy efficiency programme.
All manufacturing locations were thoroughly
surveyed with respect to the building envelope
and energy consuming processes. This data will
be validated by a selective audit process in 2023.
We will then develop a playbook for our plants
to systematically address energy conservation
moving forward.

Intensity
factor (CO2(e)T per €m revenue)
2019
90.03

We have seen a year-on-year increase inelectrical consumption and a 2021 to 2022
increase in fossil fuel consumption. In 2022 we
believe this is strongly correlated to our increase
in revenue.

2021

Greenhouse gas emissions

Our GHG emissions have decreased from2019 significantly. This is due in large extent
to volume reduction related to COVID-19 andthe microchip shortage. We have also reduced
emissions through the procurement of renewableenergy. Overall we have seen a minor increase inemissions in Scope 1 and 2 categories from 2021
to 2022. 258,042 to 260,709 or approximately
1.03% increase respectively. This is well below
the increase in overall revenue of over 8% from2021 to 2022.

2020

94.72

2021

87.26

2022

79.43

Electricity consumption

Global(kWh)526,434,728
2019 electricity consumption
2020
2022

457,404,458
485,749,751
498,613,698

Scope 1 emissions

Global2019 Scope 1 emissions (CO2(e)T)39,170
2020
2021
2022

30,68027,76330,383

Scope 2 emissions

Global(e)T)
2019 Scope 2 emissions (CO2267,913
2020

235,9472021

230,279

2022

229,185

Link to Strategy

TI Fluid Systems plc | Sustainability Report 2022

26

Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

Carbon – own operations
Continued

CASE STUDY

CDP public disclosure
At TI Fluid Systems, we believe in,and are committed to, conserving
natural resources and protecting
the environment for the benefit of
our employees and communities,
as well as for future generations.
This commitment to environmental
responsibility and sustainability isreflected in our business strategy,
objectives and commercial priorities.
Transparency is an essential element of ourenvironmental policy. In keeping with this, we areproud to announce that, in 2022, we have begun
publishing a wide range of our environmental data
through CDP, a global non-profit organisation thatis the world’s leading repository of environmental
data. Disclosing environmental data via CDP
has become a best practice, with over 18,700
companies doing so in 2022 – a record forthe organisation.

electricity and energy efficiency programmes
in place to reduce energy consumption and ourcarbon footprint.
For example, from 2024, we will begin sourcing
almost all of our electricity for our plants andoffices in Michigan through DTE Energy’s
MIGreenPower Program. This initiative enables
customers of DTE Energy to attribute theirelectricity usage to DTE’s wind and solar projects
in Michigan, contributing towards a cleaner future
for all.
Hans Dieltjens, our CEO, said: ‘As more andmore of our shareholders, employees andcustomers are looking for environmental
transparency, disclosing through CDP is a major
step forward in demonstrating our commitment toenvironmental sustainability.’
Our CDP data is available by visiting the CDP
home page (www.cdp.net/en). Please notethat you will need to register with CDP to view
any company that has made its data publicly
available, including ours.

As part of our disclosure, we completed rigorousquestionnaires covering our environmental
policies and governance, energy consumption,
greenhouse gas emissions, waste generation,
and water use.
In recent years, we have strived to improve themanner and method in which we collect andverify energy, waste and water consumption
data across all our global locations. In the longterm, we are dedicated to putting renewable

TI Fluid Systems plc | Sustainability Report 2022

27

Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

Carbon – products and services
Carbon – products and services
refers to a company’s managementof the energy efficiency and/or
GHG emissions of its services andproducts during the use phase.
Our ambition

We also manufacture high-pressure fuel rails thatallow for the optimisation of internal combustion
engines and increased fuel efficiency.

Products for electric vehicles

Chassis thermal plastic manifolds, battery
thermal plastic lines and connectors, aluminium
lines and connectors, rubber lines.

We provide product offerings to help reduce
exhaust and evaporative emissions, as well
as reduce the weight of material in the vehicle.
Reducing weight directly affects the fuel efficiency
for ICE powered cars and allows EVs to go further
on a charge.

Reduction in energy requirements
of products and services
The Company has been awarded the London
Stock Exchange’s Green Economy Mark inrecognition of the positive environmental impact
our product technologies have by helping makecars greener. We are proud that our technology
and products support the green economy, andthat we deliver safety-critical technology for theenvironmental benefit of vehicles.
These products include lightweight pressureresistant fuel tanks, lightweight plastic lines andconnectors for coolants and refrigerants.

€1.3bn2022 BEV products lifetime revenue

TI Fluid Systems plc | Sustainability Report 2022

31%

Link to SDGs

Link to Strategy

of BEVs for nameplates launched during 2021

28

Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

Water use
Water use focuses on water scarcity
and how effectively a company uses
its water supply.
Our ambition

Reduce water use, especially in areas with highwater scarcity risks. Protect the quality of thewater in the communities that we operate andlive in.

Water recycled and reused

We are implementing a strategy to reduce the useof water and increase our conservation efforts,
particularly in areas that have water scarcity
issues. In 2021, the following water conservation
targets were established for us to achieveby 2030:• FCS Process Plants: 25% reduction from 2020
baseline (3.00% annual reduction)• FCS Thermal Plants: 10% reduction from 2020
baseline (1.25% annual reduction)

Water recycled and reused

The majority of the water that we use is related to
non-contact cooling. As such, much of this water
is discharged to local sanitation departments.

Link to SDGs

Link to Strategy

We have several initiatives used to minimise
the volume of water that we use in our
production environment.

Water sources significantly
affected by withdrawal of water
None.

• FCS Systems, FTDS Pump and FTDS Tank
Plants: Change to 100% low-flow fixturesby 2030
In 2023, we will reassess our baseline year
for water consumption. In 2020 we had many
plants that were shutdown due to COVID-19
and we want to assure that have set targets thatare achievable and appropriate for the scale ofour operations.

323,954625,642

Water withdrawal
by source

Municipal water supplies orother water utilities

Total water
withdrawal
1,019,812

Groundwater
Purchased water

Total water withdrawalbysource in m3
2019

00%

2020

888,3882021

988,1772022

1,019,812

70,216

TI Fluid Systems plc | Sustainability Report 2022

29

Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

Waste management
Generation of Waste

RecycleA key element of our business’s sustainability isbuilt around management of the non-hazardousand hazardous waste that the Company
generates. Our focus is based around thefollowing four elements: Reduce, Reuse,
Refurbish, Recycle.

Our Company has a strong recycling
culture. Our plants have sought out recycling
opportunities for cardboard, wood, plastics
and metals for years. This culture supports oursignificant landfill avoidance.

ReduceIn 2022, our EHS teams established a new
baseline waste generation volume thatincorporates hazardous and non-hazardous
waste generation. We have been working on
waste minimisation and reduction for years.
With this new baseline, we are in the process offormalising a waste minimisation target and new
landfill avoidance target.

Over the past several years we have worked
with suppliers and our customers on thedevelopment of reusable containers. The useof reusable containers reduces the amountof waste generated, particularly for wood andcardboard waste streams. We have a very strong
scrap reduction initiate. Our operations, quality,and environmental teams work together to try
to eliminate scrap production. Scrap rates havebeen set as business KPIs and are tracked
monthly. The reduction of scrap is an important
waste and raw material conservation effort.

Reuse

Several elements of the business have foundways to reuse material and resources to minimise
the generation of waste. Both of our divisions
have programmes where we collect plastic thathas been either blow molded or injection moldedthat can be mechanically reground and reusedin certain products that we produce. The reuse is
an important step used to both minimise waste
generation and conserve raw materials.

Refurbish

Several of our plants are involved in returningslightly used or damaged wood pallets forrefurbishment. This prolongs the life of the palletand ultimately reduces the need to harvest
additional wood for pallet construction.

TI Fluid Systems plc | Sustainability Report 2022

Our ambition

We anticipate announcing waste managementtargets in 2023.

Waste disposal

As our sustainability initiatives develop, weare selecting waste vendors that have strong
approaches to sustainability. In some regions wehave our food waste or ‘organic waste’ completely
segregated, supporting landfill avoidance. We
have many plants that are able to divert some of
the waste streams that they generate to waste toenergy facilities. Finding and using responsible
and sustainable waste management partners isa key focus for our Board, senior management
team, and our employees. We are committed tominimising our impact in the local communities
that we live and operate in.

Hazardous waste generation
Hazardous total

metric ton

2021

2022

2,233.70

2,035.93(i) Reuse (hazardous)

metric ton

43.76

43.93

(ii) Recycling (hazardous)

metric ton

575.83738.30(iii) Composting (hazardous)

metric ton

0.00

0.00

(iv) Recovery, including energy recovery (hazardous)

metric ton

117.85329.40362.76(v) Incineration (mass burn) (hazardous)

metric ton

355.46(vi) Deep well injection (hazardous)

metric ton

0.00

0.00

(vii) Landfill (hazardous)

metric ton

225.74123.20(viii) On-site storage (hazardous)

metric ton

602.50124.34(viiii)) Others (hazardous)

metric ton

312.56313.992021

2022

Non-hazardous total

metric ton

31,874.00

31,381.69(i) Reuse

metric ton

4,885.48

4,555.77(ii) Recycling

metric ton

15,691.10

18,306.67(iii) Composting

metric ton

60.81

193.13(iv) Recovery, including energy recovery

metric ton

356.83389.43(v) Incineration (mass burn)

metric ton

714.02825.96(vi) Deep well injection

metric ton

0.00

0.00

(vii) Landfill

metric ton

8,752.60

5,857.95(viii) On-site storage

metric ton

18.51

19.70

(viv) Others

metric ton

1,394.65

1,233.06

Non-hazardous waste generation

Link to SDGs

Link to Strategy

30Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

Waste management
Continued

CASE STUDY

San Luis Potosí Multi-Layer Extrusion Line
San Luis Potosí, Fuldabrück andGlobal Engineering teams completed
the installation of a new Multi-Layer
Extrusion Line at our San Luis
Potosí, Mexico plant.

The project began in Q1 2021 and was completed
in May 2022. The new machine will support
production of fuel and coolant lines, giving us thecapability to produce these products locally in
Mexico. The machine is truly state of the art andwill be able to produce up to six different layersof plastic. Additionally, the localisation of thisimportant set of lines will also eliminate the needto ship these products from other TI facilities inNorth America. One of the benefits of this is the
reduction of non-hazardous waste associatedwith the shipping dunnage. Additionally, anymaterial that we can make on site eliminates
GHG emission from the logistics supply chain.
Not only is this an important milestone in our
localisation initiative, it will also give the businessa competitive advantage in the future, as StefanRau, Executive Vice President FCS, explains:‘The completion of this project is very importantin the execution of our strategy. Thank you toeveryone involved for all of your hard work. Next,
we are to install a corrugated tube line in SLP, withthe project set to finish next year.’

TI Fluid Systems plc | Sustainability Report 202231

SocialTI Fluid Systems plc | Sustainability Report 2022

In this section

Community relations

33

Data privacy and security

35

Human rights

36

Human capital38

Occupational health and safety

39

Product safety

41

Responsible purchasing

42

32

Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendixCommunity relations
Community relations focuseson how companies engage withlocal communities (including
indigenous peoples) throughcommunity involvement, community
development and/or measures
to reduce negative impacts on
local communities.

USA (40K EUR)

Germany (20K EUR)

Poland (20K EUR)

Students

Students

Students

3

2

4

Partners

Partners

Partners• National Action Council for
Monorities in Engineering• University of Karlsruhe(“Karlsruhe Institute of Technology”)• Adam Mickiewicz University, Poznań
• AGH University of Science and Technology,
Krakow• Economy foundation of Germany(“Stiftung der deutschen Wirtschaft”)

Our ambition

We operate in 28 countries worldwide. Our people
and operations are encouraged to develop a local
strategy to make positive contributions to theircommunities through participation in local events.
In 2022, our employees participated in andcontributed to many community and charitableprojects across the world.
We also seek to make a positive impact in the
many local communities where we operate
through local charitable and outreach activities.
We established a scholarship programme
to support and provide opportunities forfemale students (55 in 2022) to pursue their
STEM (science, technology, engineering andmathematics) studies at colleges and universities
in countries where we have significant operations.

Mexico (20K EUR)

20

Students

Link to SDGs

Link to Strategy

TI Fluid Systems plc | Sustainability Report 2022

China (20K EUR)

26

Partners

Students• Technological University of
San Luis Potosí (UTSLP)

Partners• Autonomous University of San Luis
Potosí – Faculty of Engineering(UASLP)• Jilin University (Changchun)• Shanghai University of Engineering Science• Civil Aviation University of China (Tianjin)

33

Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendixCommunity relations
Continued

CASE STUDYTI Fluid Systems Ukraine Support
The Russian war with Ukraine has
resulted in a humanitarian disasterfor the people in Ukraine. Our
businesses have helped to unite
people behind a common cause,and provide them with a platformfrom which to provide assistance.
We saw that at times throughout
the COVID-19 pandemic and that isexactly what we have seen again in
response to the crisis in Ukraine.

At TI Fluid Systems, we are incredibly proud towork with such compassionate teams all over
the world. Many of our employees have gone
above and beyond to raise money and supplies
for displaced Ukrainians. These efforts havetaken place throughout the entire Company’s
network of global locations. This really has been acollaborative approach across the board.
An example of these phenomenal efforts comesfrom Poznan, Poland, where the TI team hada lasting impact on the city’s efforts to send
goods to Ukrainian refugees. Volunteering at the
Poznan International Fair and at the main railway

station in the city, the team put their professional
experience to good use, implementing changes
to the refugee servicing process. Thesechanges significantly accelerated the process ofaddressing the needs of those who have had toflee Ukraine.
The impact of the work undertaken by the TI staff
was huge; the organisers of these efforts asked
the team to train other volunteers to ensurethat these standards were maintained. Many
members of staff have insisted that, although thework was physically exhausting, it was worthwhile
to meet the needs of those affected by the war.
In Poznan, the TI team’s commitment has been
incredible, and has been recognised by theCharitable Caritas Foundation and the local firebrigade, with both bodies awarding the teamwith certificates.

Even further afield, in Telford, England, the teamhas sent multiple donations of essential items,
ranging from medical supplies to baby equipment.
TI staff in Ukraine’s bordering countries havealso demonstrated their solidarity with theirneighbours, with many offering their homes andspare rooms to displaced Ukrainian people.
This goodwill has extended throughout the entire
Company. So far, TI employees have contributed€33,500 to the Red Cross and to variousorganisations that have supported Ukrainian relief
efforts. The Company itself has added an extra€58,500 on top of this, taking our overall donation
to €92,000.

This support has extended further, beyond
Poznan. In the Czech Republic, our team at
Mlada Boleslav has played a crucial role inorganising the delivery of essential goods tothose in need. The team has also contributed
financially to ensure that Ukrainian refugees don’t
go without food, water, clothing and shelter. At
our Jablonec site, our employees have donatedmoney and supplies to the People in Need charityand have bought medical supplies and medicinesthat are to be shipped to Ukraine. The team has
demonstrated its compassion by arranging for
Ukrainian members of staff to have access to ameeting room to make free internet calls to their
homeland, and by offering the relatives of these
individuals employment.

TI Fluid Systems plc | Sustainability Report 2022

34

Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

Data privacy and security
Data privacy and security focuses
on data governance practices,
including how companies collect,use, manage and protect data.
The emphasis is on measures taken
to ensure safe and secure use and/or maintenance of customers’
personally identifiable data.
We are committed to safeguarding the privacy of
our stakeholders and have established a robust
data protection policy to ensure compliance withapplicable laws.
At the core, sitting alongside our Information
Security policy and Record Retention policies,
is our Privacy policy, which details the generaldata protection principles, responsibilities andexpectations of the Company regarding thehandling of the personal data of our employees
for legitimate business purposes as required bylaw or with individual consent.

The establishment of a dedicated email(privacy@tifs.com) for queries, requests andreporting of potential and actual data breaches,
ensures timely management of queries andprompt investigation of reports.

CASE STUDY

Data Transfer
Agreement

Audits are performed locally throughout Europe,
recording the categories of personal data held,
the purpose of the processing, the technical andorganisational security measures in place tosafeguard such information and the lawful basisof the processing according to the General Data
Protection Regulation.

Following the EU Commission’s
publication on 4 June 2021
of new Standard Contractual
Clauses, TI Fluid Systems has
updated its International Data
Transfer Agreement. These
updates ensure that, where
personal data is required to
be transferred between group
entities, such transfers are donein accordance with the law.

As well as ensuring the internal safeguarding ofstakeholder data, we have adopted measures toensure such requirements are met by relevant
third-party service providers through dataprocessing agreements.
We continue to closely monitor developmentsin the privacy landscape and update our dataprotection policy as necessary.

Regular training is delivered to ensure knowledge
regarding the processing of such data is current
as well as requiring an annual acknowledgementof employees confirming their ongoingcommitment to the policy. The policy is available
on the intranet and in our facilities, and we also
have an external-facing policy available on
our website.

Link to SDGs

TI Fluid Systems plc | Sustainability Report 2022

Link to Strategy

35

Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

Human rights
Human rights focuses on how
companies manage and respectfundamental human rights within
their operations. Emphasis is on
measures taken to protect civil andpolitical rights, as well as economic,
social and cultural rights, includingchild and forced labour.
Our ambition

We are committed to conducting business inan ethical and professional manner at all times.
The foundation of our Human Rights policy isrespect for the fundamental and essential humanrights of our employees, customers, suppliers andother stakeholders.
Our Human Rights policy aligns withinternationally recognised human rights
standards, including the United Nations Guiding
Principles on Business and Human Rights andthe International Labour Organization Declaration
on Fundamental Principles and Rights at Work.
This Human Rights policy is intended to serve asa supplement to our Code of Business Conduct.
Our management team works to eliminate or
reduce the risk of human rights violations in allareas of our business across all global locations.
We recognise the diverse racial, social andeconomic conditions where we operate andseek to uniformly apply our Human Rights policy
and Code of Business Conduct at all locations.
Consistent with our commitment to fundamental
human rights, we seek to maintain the highest
standards and values across all locations while
fully complying with any specific human rights
regulations applicable in the jurisdictions weoperate in.

TI Fluid Systems plc | Sustainability Report 2022

We applied to be a signatory to the UN Global
Compact. The UN Global Compact aligns wellwith our Company’s core values.
The foundation for our Human Rights policy isrespect for the fundamental and essential humanrights of our employees, customers, suppliers andother stakeholders.
The Group is committed to doing businessethically. We fully support generally accepted
human rights conventions as reflected in our
Human Rights policy as well as Code of BusinessConduct and in our annual Modern Slavery
Statement.
We take the protection of human rights seriously
and have zero tolerance for the use of slave andchild labour.

Link to SDGs

Link to Strategy

36Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

Human capital
Human capital focuses on the
management of human resources,
including the management ofrisks related to scarcity of skilled
labour through retention andrecruitment programmes and careerdevelopment measures such as
training programmes. Additionally,
it includes labour relation issues,
including the management of
freedom of association andnon-discrimination, as well asworking hours and minimum wages.
Our strength as a global Tier 1 automotive
supplier is directly tied to the talent and diversityof our staff, management and Board leadership.
We are committed to treating individuals
with respect, and to building and maintaining
a culture that values and promotes ethicalbusiness practices, compliance, diversity andinclusion. We welcome employees with diverse
perspectives who share our vision of a world
marked by knowledge and compassion.
Our Core Values promote our social programmes
by valuing our employees, sustaining enduring
relationships with our customers, and making
positive contributions in the communities where
we operate.

Link to SDGs

Link to Strategy

TI Fluid Systems plc | Sustainability Report 2022

Our people are considered for employment,
training, career development and promotion
on the basis of their abilities and aptitudes,
regardless of age, gender, sexual orientation,
religion or ethnic origin. These messages are
reinforced by our Core Values.
Consistent with our Core Values and focus
on our employees, we have continued todevelop and improve our global safety and ourdiversity programmes.
In 2022, we again engaged directly with ourworkforce through our Global Employee
Engagement Survey.
We learned the importance that our employees
place on work-life balance and implemented aGroup-wide hybrid work model that provides
many employees the opportunity to work fromhome 40% of the time.
We take our employees’ health, both physicaland mental, seriously, and we have implemented
several initiatives to support our employees.
These include a Global Employee Assistance
Programme across all countries which provides
resources for our employees’ emotional andmental health, a robust health and safety
programme ensuring our workplaces are safe, a
feedback loop with employees through skip levelmeetings, employee engagement surveys and ahotline for employees to address potential issues
they might have in their location.
Our diversity programmes include an inclusivity
assessments and inclusivity education of
our top management, anti-bias training, theimplementation of regional diversity committees,
programmes to increase gender diversity, andmentoring programmes for women.

37Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

Human capitalContinued

Code of Business Conduct

We expect that all employees will conduct
their business in accordance with our Code ofBusiness Conduct (COBC), and all applicablelaws, rules and regulations of all jurisdictions that
may apply to our business activities.
Compliance with our COBC and all applicablelaw, both in letter and in spirit, is the foundation onwhich our ethical standards are built.
The Code of Business Conduct addresses
the following:• Gifts, loans and other benefits to employees• Conflicts of interest• Confidential information• Record keeping• Business-related expenses• Facilitation payment to government
employees or officials• Competition and fair dealing• Positive work environment• Intellectual property• Product safety and quality• Environmental standards• Workplace health and safety
All employees receive regular training on the
COBC and compliance issues relevant to theirfunction. In addtion, employees are required
to annually certify their understanding andcompliance with the COBC.

TI Fluid Systems plc | Sustainability Report 2022

CASE STUDY

Global Employee
Assistance
Programme
As part of our investment in our employeeswellness and wellbeing we have established a
Global Employee Assistance Programme (EAP).
An EAP is a voluntary, work-based programmethat offers free and confidential assessments,
short-term counselling, referrals, and follow-up
services to employees who have personal and/or
work-related problems.
Our HR team has selected and implemented
an EAP that addresses a broad and complex
range of issues affecting mental and emotional
well-being, such as alcohol and other substanceabuse, stress, grief, family problems, andpsychological disorders. Our third party EAP
counsellors also work in a consultative role withmanagers and supervisors to address employee
and organisational challenges and needs when
they arise.
We believe that our EAP has the capacity toprovide critical mental health support. We also
believe that we have shown a strong commitment
to our employees physical and mental healthby providing and maintaining a strong, worker
centered, EAP.

38

Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

Occupational health and safety
Occupational health and safety
focuses on the management of
workplace hazards affecting acompany’s own employees andon-site contractors.

architecture and direction for the Group’s safetyrelated programmes. This Committee determines
our safety KPIs and objectives, and helps to
implement our safety strategy.

Our ambition

At a local level, each plant is required to havea Safety Committee that comprises the plant
manager, at least one other senior manager, andoperators and supervisors working on the plant
floor. The mandates of local safety committees
vary depending on the plant but, generally, include
hazard identification and assessments, accident
investigations, safety audits, safety training andrecommending personnel protective equipment.

To have world-class safety for all locations weoperate in.
The health and safety of our employees
remains an overarching priority and is central
to everything we do. We focus on safe working
environments and eliminating work-related
injuries and illnesses.
We report safety statistics to the Board at every
meeting, including all potentially life-threatening
incidents and lost time injury frequency (LTIF)
for the organisation as a whole. This information,with a detailed breakdown of injury by plant andopen injury reports, is provided to each regional
Managing Director on a monthly basis.
The Corporate Safety Steering Committee
consists of the Chief Legal Officer andChief HR Officer, the Divisional Executive Vice
Presidents and the Global EHS Director. The
Committee is responsible for providing theLost time injury frequency

5

(Lost
time incidents÷ hours worked) x 1m hours
2018
00%

4

2019

3

2.87

2020

1.67

2021

1.75

2022

4.14
2.63

TI Fluid Systems plc | Sustainability Report 2022

1
0

0
0
0
Fatality rate

LTIF for the period 2020 to 2022 is presented in
the graphic below. Our LTIF has increased slightly
over the course of the last two years.The slightincrease in LTIF from 2020 to 2022 is primarily
driven by our initiative to have more accurate andtimely safety reporting by our Asia Pacific plants.
Our reporting from Asia Pacific has continued to
improve as evidenced by the number of injuries
reported in the region compared to previous years
Our LTIF compares very favourably to industrial
benchmarks.

Link to SDGs

Link to Strategy

All employees
Visitors, contractors and temps

1.96

2

1.96

3.06

Safety data reporting

The corporate safety team helps to steer andimplement policies and programmes approved by
the Corporate Safety Steering Committee.

TI Fluid Systems full time

0.14

0.14

Lost time
injury rate

Recordable
injury rate

39

Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

Occupational health and safety
Continued

CASE STUDY

ISO 45001 Occupational Healthand Safety Management System
In 2021, we began our journey
to align our plants to a central
occupational health and safety
management system. In 2022,
we added an additional 20 plants tothe scheme. Our goal is to continue
to roll this programme out across theglobe and to have all manufacturinglocations certified by the beginningof 2024.
Our ISO 45001 occupational health and safety
management system is compliant with thestandard and includes the following systemelements: hazard identification, risk ranking
and management, safety reporting, training,
emergency preparedness, internal andexternal audits, and management inclusion
and review. A key focus of our programme
revolves around contractor safety. We treat ourcontract employees and external contractors as
employees. We hold all individuals on our sites
to our stringent safety protocols, which, in mostcases, are more stringent than local law requires.
This system was integrated into plants located inEurope and North America. A total of 29 plants
and the Auburn Hills corporate offices werecertified by our third-party registrar in 2021.

TI Fluid Systems plc | Sustainability Report 2022

This system was designed by our EHS teamto allow our plants to integrate ISO 14001
environmental management and our ISO 45001
occupational management systems into one
environmental health and safety management
system. This will allow our plants to leverage theexisting ISO 14001 framework that we have inplace at most locations into our new combined
management system.
We are actively increasing the number of safety
professionals that we have in the organisation
at the plant level. Adding additional talent to
our Safety team in 2022 has resulted in thedevelopment of new learning and networking
opportunities for our existing team of safety
professionals. We are proud of our teams’ safety
performance and we look forward to continuing
to improve our safety programme as we strive forworld-class safety across our operations.

40

Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

Product safety
TI Fluid Systems has establishedproduct safety processes
that ensures our products are
consistently reliable and comply
with all applicable customer,
industry, legal and government
regulatory requirements.
Our ambition

The majority of our manufacturing locations are
IATF 19649 certified. We have a very low rate of
non-conforming pieces that have been rejectedby customers verses pieces sold. This is shown in
the graph on the right.
Our Customer Safety or Critical Concern Process(CSCC) provides clear direction regarding
concerns that could be classified as safety
or critical in nature and that could impact theperformance of saleable products.
We ensure that the importance of product safety
is understood and prioritised by all our employees
and, to support this, we provide continuous
training, starting with the initial induction process,and continuing to annual roadshow events.
In the event that a performance concern issuspected, internally or externally, our teams
initiate the CSCC process, triggering a structured
approach to analyse, classify and communicate
the issue within the organisation. Potential
critical or safety concerns are automaticallylogged, escalated and monitored via our portal
to conclusion by senior staff members working
with team members on appropriate resolutions of
the issue.

TI Fluid Systems plc | Sustainability Report 2022

Mandatory lessons learned from each safety or
critical concern event is used to drive product andprocess improvements across the organisation.
Corrective actions are cascaded across similar
products and manufacturing lines to prevent
future issues with product guidelines updated
for reference during advanced product quality
planning (APQP) team design reviews.

Customer satisfaction

In addition, we conduct on-site Safety,
Regulatory and Functional (SRF) audits toverify that production practices comply with thelatest knowledge.

The quantity of non-conforming pieces rejectedby external customers versus pieces sold,measured in parts per million(partsper million
sold)
2018
00%
2019

3.8

2020
2021
2022

7.7
5.0
6.0

34
Certified product safety and conformance
representatives

276
SRF audits conducted

99
Updated product and process standards

Link to SDGs

Link to Strategy

41

Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

Responsible purchasing
Definition of material issue
Integrating issues related to suppliersustainability into our purchasing
methodology for selecting vendors
and rating vendors is criticalto understanding where our
network of suppliers are in theirsustainability journey.
Our ambition

Develop a formal system for promoting andmonitoring the sustainability of our supply
chain. Creation of a systematic methodology
for evaluation of sustainability status within the
supply chain.

Setting standards

Our purchasing team elected to use ISO
20400 Sustainable procurement guidance as
the keystone for developing our sustainablepurchasing programme and other ESG
improvements within the purchasing function.
This work will promote the use of more ESG
concepts in both our purchasing strategies
and sourcing process, in turn leading to a moresustainably sourced supply base.

Assessing suppliers andsupplier engagement

The purchasing teams from both divisions worked
together to develop an initial supplier survey inlate 2022 to begin to evaluate 44 of our largest
suppliers.

Development of a sustainablepurchasing programme

The purchasing team is now formalising ourglobal sustainable purchasing policy which we
expect to issue in 2023. This policy will establish
the formal mechanism for compliance with
our Safety, Environmental, and Human Rights
policies by our supply base. We intend to train our
global purchasing team on ESG requirements
so that they will be able to properly deploy ourpolicy and updated purchasing guidance in 2023.
We plan to continue our discussions aroundthe development of internal and external KPIs
associated with sustainable purchasing.

Link to SDGs

Link to Strategy

TI Fluid Systems plc | Sustainability Report 2022

42

Governance

TI Fluid Systems plc | Sustainability Report 2022

In this section
The Board

44

Corporate governance45

ESG Steering Committee report

47

Business ethics

48

43

Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

The Board
The Board – Leadership, strategy and development, controls and values
Hans Dieltjens

Chief Executive Officer and President

Tim Cobbold

Elaine Sarsynski

Julie Baddeley

Trudy Schoolenberg

Susan Levine

John Smith

Jane Lodge

Stephen Thomas

Independent Non-Executive Chair

Independent Non-Executive Director

Independent Non-Executive Director

Ron Hundzinski

Chief Financial Officer

Non-Executive Director

Senior Independent Director
Independent Non-Executive Director

Independent Non-Executive Director

Non-Executive Director

Nomination Committee

Audit & Risk Committee

Remuneration Committee

ESG Steering Committee

Chair

Chair

Chair

Chair

Members

Members

Members

Members

Trudy Schoolenberg

John Smith

Jane Lodge

Susan Levine

Key responsibilities

Key responsibilities

Key responsibilities

Hans Dieltjens

Tim Cobbold
Julie Baddeley

Evaluating the size, structure and composition of
the Board

Jane Lodge
Elaine Sarsynski

Reviewing and monitoring the integrity of thefinancial statements

Assisting the Board in relation to the compositionof the Board, including evaluating the balance ofskills, knowledge, experience and diversity

Ensuring effective systems of internal
controls, internal audit and risk management
are maintained

Consideration of succession planning

Advising on the appointment of the external
auditors and monitoring non-audit work
undertaken by the external auditor

TI Fluid Systems plc | Sustainability Report 2022

John Smith
Julie Baddeley

Setting the Remuneration policy for all Executive
Directors and the Chair
Determine remuneration packages, including
bonuses and awards, for Executive Directors
and Senior Management in consultation with the
Chair and Chief Executive Officer, as appropriate

Elaine Sarsynski
Julie Baddeley

Ron Hundzinski

Key responsibilities

Recommending the overarching Environmental,
Social and Governance (ESG) vision andstrategy road map to the Board in order to ensurethat sustainability priorities are met.
Monitors the Group’s corporate
responsibility, sustainability and stakeholder
engagement activities

44

Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

Corporate governanceOur ambition andsustainability governanceCorporate governance comprises
six pillars: Board/management
quality and integrity; Board
structure; ownership andshareholder rights; remuneration;
audit and financial reporting; andstakeholder governance.
Our ambition

Governance remains a top priority for the Boardand executive leadership in order to promote thestrategic development and sustainable successof the Group.
The Group has long recognised the importanceof effective corporate governance in supporting
the long-term success and sustainability of ourbusiness. Our robust governance framework notonly satisfies the provisions of the UK Corporate
Governance Code but also supports the effective
operation of our business, enabling us to deliver
our strategy. The Annual Report covers ourgovernance arrangements, the operation of
the Board and its Committees, and describes

Link to SDGs

how the Board discharges its collective
responsibilities. The Board’s decision-making
reflects the balancing of stakeholder interestsand how we have engaged is explained in our
Section 172(1) statement.

Sustainability governance

The ESG Steering Committee was establishedin 2021 to support the Board to fulfil its oversight
responsibilities for ESG matters. The Terms ofReference are available on our website. As aleader in the automotive industry, we recognise
the part the Group plays in the global community.
Environmental and social performance is now apart of the wider management team’s strategic
objectives for 2023 and beyond. Sustainability
targets have also been included as a performanceelement of our Long-Term Incentive Plan for
Executive Directors and senior management.
The alignment of our purpose and strategy using
our remuneration will ensure we will continue
to develop and supply products to support
hybrid and battery electric vehicles in the mostsustainable way. Colleagues from different
areas of the business attend the meetings andsupport the discussions. Elaine Sarsynski,Committee Chair, regularly reports to the Boardon key sustainability issues considered by theCommittee, and Matt Paroly, Chief Legal Officer,
has been appointed as the Group’s ESG Director

to act as a liaison between the Committee, senior
management and the wider workforce.

Sustainability progress

The Committee has shown its commitment tooperating our business in a more environmentally
responsible and sustainable manner to provide
long-term success for all stakeholders. Especially,
focusing on the enhanced measurement andreporting of our carbon footprint, including
Scope 3, and establishing appropriate CO2(e)emissions reduction and water conservation
targets. Additionally, introducing more robust
safety procedures to protect our workforce anddeveloping initiatives to promote further diversity
within our organisation.
In 2022, we revised updated targets to reduce
our Scope 1 and 2 CO2(e) emissions, and havebegun implementing conservation and renewableenergy programmes to achieve these objectives.
We have completed our baseline Scope 3
inventory for the 2021 year. In addition, we havealso completed the 2022 Scope 3 inventory.
Other initiatives continue to be supported,
including evaluating our greenhouse gas
reduction programme to ensure our objectives
and efforts remain appropriate. Our social
initiatives include updating and enhancing

Link to Strategy

our Safety policy, procedures and processes,
and updating our Human Rights policy. We
have implemented a new learning platform tosupport education and career development for
all employees. Other initiatives and educational
programmes to promote ethics, diversity andinclusion within our organisation are also
underway.
In addition, the Board has continued toincorporate environmental and social
performance targets as a significant element of
our long-term incentive programme for Executive
Directors and senior management, as describedin more detail in the Remuneration Report in thelatest Annual Report.

We are very pleased with theCompany’s work this year
to build a more sustainablebusiness. We will continue toreview measures and targets togauge our progress and ensureaccountability at all levels of ourorganisation.
Elaine Sarsynski
ESG Steering Committee ChairTI Fluid Systems plc | Sustainability Report 2022

45

Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

Corporate governanceContinued

The Board of Directors recognises thatsustainability is essential to the Group’s long-term
success and that sound environmental, socialand governance practices are fundamental andnecessary to a sustainable business.

ESG Steering Committee

To assist the Board in its oversight of ESG
matters, the ESG Steering Committee wasformed in 2021. The Committee was charged
with recommending the overarching sustainability
vision and strategy to the Board, together withannual plans and targets for ESG matters, aswell as supporting management to prioritisesustainability within the Group’s overall corporate
strategy. The Committee seeks to solicit andunderstand the views of the Group’s stakeholders
to inform the Group’s long-term strategic
decisions and identify the relevant sustainability
priorities that most significantly impact the Groupand its stakeholders, reputation and public
interest role.

Integration of ESG into all
aspects of the business throughcross-functional teams

We have a top-down approach to facilitate ESG
integrations across the business. The Boardand senior management understand the value
and relevance of ESG initiatives and engage
regularly to ensure employee and supplierawareness. Cross-functional teams are working
to establish and communicate our initiatives,
KPIs, goals, strategies, and long-term vision for
our ESG programmes.

TI Fluid Systems plc | Sustainability Report 2022

Consideration of ESG in
determining Executive
remuneration

The decision to link a significant portion of thelong-term incentive to sustainability, favouring
the quantitative environmental measure and thequasi-quantitative social measure, was supportedby the ESG Steering Committee. The inclusionof the reduction of Scope 1 and 2 emissions is inline with specific long-term public commitments
made to our customers, so is well aligned to thebusiness imperative.
The Committee is aware that 25% of the longterm incentive allocated to sustainability is atthe ‘high end’ of expectations but felt this wasappropriate as it aligns directly with the overallrole of the Group in helping the automotive
business through the transition away fromfossil fuels.
The Committee was insistent, however, that themeasures used should be quantitative and/or
independently assured to provide confidence thatgenuine progress had been delivered and that thetargets were suitably challenging.

Sustainability governance framework
Board of Directors
The Board of Directors recognises that sustainability is essential to the Group’s longterm success and that sound environmental, social and governance practices arefundamental and necessary to a sustainable business.

ESG Steering Committee
To assist the Board in its oversight of ESG matters, the ESG Steering Committee wasformed in 2021. The Committee was charged with recommending the overarchingsustainability vision and strategy to the Board, together with annual plans and targets
for ESG matters, as well as supporting management to prioritise sustainability within
the Group’s overall corporate strategy. The Committee seeks to solicit and understandthe views of the Group’s stakeholders to inform the Group’s long-term strategic
decisions and identify the relevant sustainability priorities that most significantly impact
the Group and its stakeholders, reputation and public interest role.

Integration of ESG into all aspects of the businessthrough cross-functional teams
We have a top-down approach to facilitate ESG integrations across the business.
The Board and senior management understand the value and relevance of ESG
initiatives and engage regularly to ensure employee and supplier awareness. Crossfunctional teams are working to establish and communicate our initiatives, KPIs, goals,
strategies, and long-term vision for our ESG programmes.

46

Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

ESG Steering Committee report
Committee membership
Meetings attended
Elaine Sarsynski (Chair)

5/5

Julie Baddeley

5/5

Hans Dieltjens

5/5

Ron Hundzinski

5/5

2022 highlights• Published the Group’s first stand-alone
2021 Sustainability report• Supported the engagement of a 3rd party
consultant as an adviser to help with theGroup’s CO2(e) emissions reduction target
setting, Scope 3 measurement, renewableelectricity plan and energy efficiency initiatives• Reviewed the Group’s diversity and inclusion
programme, including key focus areas andmetrics• Recommended approval and adoption of
the Group’s new science-based CO2(e)emissions reduction target consistent withthe 1.5°C scenario• Progressed data collection for water and waste

Focus for 2023

• Review implementation of the Group’s
renewable electricity plan and energy
efficiency initiatives• Refine measurement of Scope 3 emissions• Evaluate potential net zero pathway for
the Group• Monitor progress on our CO2(e) emissions
reduction targets• Support development of our suppliersustainability policy and engagement process
to support Scope 3 reduction

TI Fluid Systems plc | Sustainability Report 2022

Dear shareholder,I am pleased to present the ESG Steering
Committee report for the year ended
31 December 2022.
The Committee supports the Board to fulfil
their oversight responsibilities with respect tosustainability matters. The Committee’s Terms ofReference are available on our website.
We recognise that the Group, as a leader in theautomotive industry, has an obligation to operate
our business in an environmentally responsible
and sustainable manner in order to provide longterm success for all of our stakeholders. As such,
our Take the Turn strategy includes sustainability
as a core element.
From an environmental standpoint, it iscritical that we address climate change not
only by supporting vehicle electrification withan expanded product portfolio, but also by
decarbonising our own operations, reducing
waste, and conserving water. In 2022, we madegreat progress on all fronts.
First and foremost, with analytical and advisory
support from Schneider Electric, the Group has
adopted a new CO2(e) emissions reduction target
that calls for a 50% reduction of Scope 1 and2 emissions and a 30% reduction of Scope 3

emissions, in each case by 2030 on an absolutebasis from a 2021 baseline. Our new targets
and have been submitted to the Science-Based
Target initiative (SBTi) for review and validation.
Importantly, we have also developed a renewableelectricity plan and an energy efficiency
programme to support achievement of our target.
We have also established water conservation
targets and are developing waste reduction
targets for all locations.

Germany, Poland, Mexico, the US, and China forfemale students enrolling in universities to study
STEM subjects. In 2022, the Group awarded
55 scholarships totalling €120,000. Thesescholarship recipients are also introduced to local
TI facilities for potential internships and otherextracurricular learning opportunities. Within thebusiness, a Women’s Mentorship programme has
been established to support and guide women on
strategies for success.

I am very happy to report that the Group receiveda B grade for Climate Change from CDP.
This very good score recognises our progress,
going from a D to B in just two years.

Both environmental and social targets continue
to be included as a performance element of ourLong-Term Incentive Plan for Executive Directors
and senior management. The alignment of
remuneration with our purpose and strategy
ensures that we will continue to focus on
Taking the Turn to develop and manufacture
products to support vehicle electrification in themost sustainable way.

On the social side, we have taken a number ofsteps to support safety, diversity and inclusivity.
We have implemented enhanced safety
processes to protect our workforce, including
expanding our ISO 45001 safety management
framework to cover an additional 20 plants in
2022, with a goal of having every manufacturinglocation included by the end of 2024. We havehired additional EHS personnel in every region
to assist with the training and implementation of
our safety programme. The Committee and theBoard regularly review the Group’s safety metrics.
To further support our employees, we havecontinued diversity and inclusivity training andassessments for the entire senior management
team. Furthermore, the Group’s recruitment
processes have been reviewed and guidanceissued to all locations to minimise unconscious
bias and promote diverse hiring. Our progress willbe tracked by monitoring against gender diversity
targets based on local university graduation rates.

The Committee is very pleased with theCompany’s work this year to build a moresustainable business. We will continue to review
measures and targets to gauge our progressand ensure accountability at all levels of
our organisation.
I look forward to updating you on our continuingsustainability journey.

Elaine Sarsynski
ESG Steering Committee Chair
15 March 2023

In order to connect to our larger communities
and prepare the next generation of women to
succeed in the automotive industry, the Grouphas established scholarship programmes in47

Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendixBusiness ethics
Business ethics focuses on the
management of general professional
ethics, such as accounting
controls, employment practices,
legal compliance, anti-competitive
practices, bribery and conflictsof interest.
Our ambition

Our goal is to integrate ethics and complianceinto our organisational culture, empowering
our employees to make ethical decisions andencouraging them to speak up if they haveany concerns.

Communication and awarenessWe understand that creating a culture of ethics
and compliance within our Company goesbeyond one-time training sessions. It requires acontinuous learning process and reinforcement.
Over the last few years, we have been gradually
implementing various initiatives to improve
communication and awareness of ethics andcompliance within the organisation. Some ofthese include: displaying posters promoting
our speak-up hotline and rolling out globally our
new app-based speak up platform, featuring
ethics and compliance messages on our intranet
homepage, using all-employee meetings as
an opportunity to educate a wider employee
base, regularly hosting workshops and meetings
featuring external speakers and experts in thefield of ethics and compliance, and conducting
our first Corporate Compliance and Ethics Week
celebrations across all our locations in 2022
(see case study).

TI Fluid Systems plc | Sustainability Report 2022

Education and development

Each year, our salaried employees are required
to complete certification of our Code of BusinessConduct. In addition, targeted training isprovided in specific areas of the business. We
have also implemented an employee learningand development platform to offer ethics andcompliance education to our salaried staff.
These efforts aim to increase understanding ofour business policies and practices in order tominimise and mitigate ethics and compliancerisks for our employees and Company.

Moving forward

In 2022, we implemented various initiatives toenhance ethics and compliance support for our
employees, including a new ethics reporting
platform, ethics education modules on ourlearning and development platform, a survey
on ethics risk and sentiment, an Adequate
Procedures Review, and a Corporate Ethics
and Compliance Week.
In 2023 and beyond, we plan to use the survey
and review findings to improve our ethics andcompliance efforts, and hold discussion groups
to further integrate the training modules within
the organisation.

Link to SDGs

CASE STUDY

Compliance Week 2022

From 6 to 12 November 2022, we held
our first Corporate Compliance and Ethics
Week celebration.
Local HR teams were provided
with a variety of ideas for ethics andcompliance-related games such as an
ethics version of the popular TV gameshow Who Wants To Be A Millionaire.
Employees actively participated in theactivities, some locations even created theirown games and offered prizes. Daily emails
related to ethics and compliance were sentout to employees, highlighting the activities
happening globally.
The event was well received andhelped increase awareness of ethics
and compliance in an engaging andinteractive way.

Link to Strategy

48Appendix

TI Fluid Systems plc | Sustainability Report 2022

In this section
GRI Content Index

50

SASB Index

58

TCFD Index

59

UN Global Compact Index

60

Glossary

61

49

Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

GRI Content Index
This report was preparedin accordance with the GRI
standards. The consolidated setof GRI Sustainability ReportingStandards 2022 served as the basis.
The following index gives the pagereferences for required informationand provides information on thecompleteness of the answer.

General disclosures
Disclosure

Description

Comments/pagereference

Completeness(self assessment)

1. The Organisation and its Reporting Practices
2-1

Organisational details

10

Partially reported

2-2

Entities included in the organisation’s sustainability reporting

12

Partially reported

2-3

Reporting period, frequency, and contact point

N/A

Not reported

2-4

Restatements of information

N/A

Not reported

2-5

External assurance

N/A

Not reported

2. Activities and Workers
2-6

Activities, value chain, and other business relationships

2, 18–23

Partially reported

2-7

Employees

33–34, 37–39

Partially reported

2-8

Workers who are not employees

N/A

Not reported

3. Governance
2-9

Governance structure and composition

44–46

Partially reported

2-10Nomination and selection of the highest governance body

N/A

Not reported

2-11

Chair of the highest governance body47

Fully reported

2-12Role of the highest governance body in overseeing the management of impacts

45–47

Partially reported

2-13

Delegation of responsibility for managing impacts

45–47

Partially reported

2-14

Role of the highest governance body in sustainability reporting

45–47

Partially reported

2-15

Conflicts of interest

N/A

Not reported

2-16

Communication of critical concerns

48

Partially reported

2-17

Collective knowledge of the highest governance body

N/A

Not reported

2-18

Evaluation of the performance of the highest governance body

N/A

Not reported

2-19

Remuneration policies

N/A

Not reported

2-20

Process to determine remuneration

44, 46

Partially reported

2-21

Annual total compensation ratio

N/A

Not reported
Continues on next page.

TI Fluid Systems plc | Sustainability Report 2022

50

Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

GRI Content Index
Continued

Disclosure

Description

Comments/pagereference

Completeness(self assessment)

4. Strategy, Policies, and Practices
2-22Statement on sustainable development strategy

2–9

Partially reported

2-23

Policy commitments

6, 16–21, 26, 29,
30, 36–40

Partially reported

2-24

Embedding policy commitments

45–48

Partially reported

2-25

Processes to remediate negative impacts

N/A

Not reported

2-26

Mechanisms for seeking advice and raising concerns

N/A

Not reported

2-27

Compliance with laws and regulations

N/A

Not reported

2-28

Membership associations

N/A

Not reported

5. Stakeholder Engagement
2-29

Approach to stakeholder engagement

16–20

Fully reported

2-30Collective bargaining agreements

N/A

Not reported

GRI 3
Disclosures on Material Topics
3-1

Process to determine material topics

N/A

Not reported

3-2

List of material topics

N/A

Not reported

3-3Management of material topics

N/A

Not reported

Comments/pagereference

Completeness(self assessment)

Topic-specific disclosure obligations (by materiality)
GRI 200: Economic
Disclosure

Description

201

Economic Performance

201-1

Direct economic value generated and distributed

N/A

Not reported

201-2

Financial implications and other risks and opportunities due to climate change

N/A

Not reported

Continues on next page.
TI Fluid Systems plc | Sustainability Report 2022

51

Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

GRI Content Index
Continued

Disclosure

Description

Comments/pagereference

Completeness(self assessment)

201-3

Defined benefit plan obligations and other retirement plans

N/A

Not reported

201-4

Financial assistance received from government

N/A

Not reported

202

Market Presence

202-1

Ratios of standard entry level wage by gender compared to local minimum wage

N/A

Not reported

202-2

Proportion of senior management hired from the local community

N/A

Not reported

203

Indirect Economic Performance

203-1

Infrastructure investments and services supported

N/A

Not reported

203-2

Significant indirect economic impacts

N/A

Not reported

204

Procurement Practices

204-1

Proportion of spending on local supplier

N/A

Not reported

205

Anti-Corruption

205-1

Operations assessed for risks related to corruption

N/A

Not reported

205-2

Communication and training about anti-corruption policies and procedures

20, 42, 48

Partially reported

205-3

Confirmed incidents of corruption and actions taken

N/A

Not reported

206

Anti-Competitive Behaviour

206-1

Legal actions for anti-competitive behaviour, anti-trust, and monopoly practices

N/A

Not reported

207

Tax

207-1

Approach to tax

N/A

Not reported

207-2

Tax governance, control, and risk management

N/A

Not reported

207-3

Stakeholder engagement and management of concerns related to tax

N/A

Not reported

207-4

Country-by-country reporting

N/A

Not reported

Continues on next page.
TI Fluid Systems plc | Sustainability Report 2022

52

Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

GRI Content Index
Continued

GRI 300: Environment
Comments/page reference

Completeness (selfassessment)

Materials used by weight or volume

N/A

Not reported

301-2

Recycled input materials used

N/A

Not reported

301-3

Reclaimed products and their packaging materials

N/A

Not reported

302

Energy302-1

Energy consumption within the organisation

26

Fully reported

302-2

Energy consumption outside of the organisation

6, Annual Report page 56

Fully reported

302-3

Energy intensity

26

Fully reported

302-4

Reduction of energy consumption

26

Partially reported

302-5

Reductions in energy requirements of products and services

N/A

Not reported

303

Water

303-1

Interactions with water as a shared resource

N/A

Not reported

303-2

Management of water discharge-related impacts

N/A

Not reported

303-3

Water withdrawal

29

Fully reported

303-4

Water discharge

N/A

Not reported

303-5

Water consumption

N/A

Not reported

304

Biodiversity

304-1

Operational sites owned, leased, managed in, or adjacent to, protectedareas and areas of high biodiversity outside protected areas

N/A

Not reported

304-2

Significant impacts of activities, products, and services on biodiversity

N/A

Not reported

304-3

Habitats protected or restored

N/A

Not reported

304-4

IUCN Red List Species and national conservation list species with habitats
in areas affected by operations

N/A

Not reported

Disclosure

Description

301

Materials

301-1

Continues on next page.
TI Fluid Systems plc | Sustainability Report 2022

53

Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

GRI Content Index
Continued

Comments/page reference

Completeness (selfassessment)

Direct (Scope 1) GHG emissions

26

Partially reported

305-2

Indirect (Scope 2) GHG emissions

26

Partially reported

305-3

Other indirect (Scope 3) GHG emissions

6, Annual Report page 56

Partially reported

305-4

GHG emissions intensity

26

Partially reported

305-5

Reduction of GHG emissions

N/A

Not reported

305-6

Emissions of ozone–depleting substances (ODS)

N/A

Not reported

305-7

Nitrogen oxides (NOX), sulfur oxides (SOX) and other significant air
emissions

N/A

Not reported

306

Effluents and Waste 2016306-3

Significant spills

N/A

Not reported

306

Waste 2020

306-1

Waste generation and significant waste-related impacts

30

Partially reported

306-2

Management of significant waste-related impacts

N/A

Not reported

306-3

Waste generated

30

Fully reported

306-4

Waste diverted from disposal

30

Fully reported

306-5

Waste directed to disposal

30

Fully reported

307

Environmental Compliance307-1

Non–compliance with environmental laws and regulations

N/A

Not reported

308

Supplier Environmental Assessment

308-1

New suppliers that were screened using environmental criteria

N/A

Not reported

308-2

Negative environmental impacts in the supply chain and actions taken

N/A

Not reported

Disclosure

Description

305

Emissions305-1

Continues on next page.
TI Fluid Systems plc | Sustainability Report 2022

54

Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

GRI Content Index
Continued

GRI 400: Social
Comments/pagereference

Completeness(self assessment)

New employee hires and employee turnover

N/A

Not reported

401-2

Benefits provided to full-time employees that are not provided to temporary or part-time
employees

N/A

Not reported

401-3

Parental leave

N/A

Not reported

402

Labour/Management Relations

402-1

Minimum notice periods regarding operational changes

N/A

Not reported

403

Occupational Health and Safety

403-1

Occupational health and safety management system

39–40

Partially reported

403-2

Hazard identification, risk assessment, and incident investigation

N/A

Not reported

403-3

Occupational health services

38

Partially reported

403-4

Worker participation, consultation, and communication on occupational health and safety

39–40

Partially reported

403-5

Worker training on occupational health and safety

N/A

Not reported

403-6

Promotion of worker health38

Partially reported

403-7

Prevention and mitigation of occupational health and safety impacts directly linked bybusiness relationships

N/A

Not reported

403-8

Workers covered by an occupational health and safety management system

N/A

Not reported

403-9

Work-related injuries

39

Fully reported

403-10Work-related ill health39

Fully reported

404

Training and Education

Disclosure

Description

401

Employment

401-1

404-1

Average hours of training per year per employee

N/A

Not reported

404-2

Programmes for upgrading employee skills and transition assistance programmes

2, 16, 37

Partially reported

404-3

Percentage of employees receiving regular performance and career development reviews

N/A

Not reported

Continues on next page.
TI Fluid Systems plc | Sustainability Report 2022

55

Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

GRI Content Index
Continued

Comments/pagereference

Completeness(self assessment)

Diversity of governance bodies and employees

24

Partially reported

405-2

Ratio of basic salary and remuneration of women to men

N/A

Not reported

406

Non-discrimination

406-1

Incidents of discrimination and corrective actions taken

N/A

Not reported

407

Freedom of Association and Collective Bargaining

N/A

Not reported

407-1

Operations and suppliers in which the right to freedom of association and collective
bargaining may be at risk

N/A

Not reported

408

Child Labour

408-1

Operations and suppliers at significant risk for incidents of child Labour

N/A

Not reported

409

Forced or Compulsory Labour

409-1

Operations and suppliers at significant risk for incidents of forced or compulsory Labour

N/A

Not reported

410

Security Practices

410-1

Security personnel trained in human rights policies or procedures

N/A

Not reported

411

Rights of Indigenous Peoples

411-1

Incidents of violations involving rights of indigenous peoples

N/A

Not reported

412

Human Rights Assessment

412-1

Operations that have been subject to human rights reviews or impact assessments

N/A

Not reported

412-2

Employee training on human rights policies or procedures

N/A

Not reported

412-3

Significant investment agreements and contracts that include human rights clauses or that
underwent human rights screening

N/A

Not reported

413

Local Communities

413-1

Operations with local community engagement, impact assessments and development
programs

N/A

Not reported

413-2

Operations with significant actual and potential negative impacts on local communities

N/A

Not reported

Disclosure

Description

405

Diversity and Equal Opportunity

405-1

Continues on next page.
TI Fluid Systems plc | Sustainability Report 2022

56

Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

GRI Content Index
Continued

TI Fluid Systems plc | Sustainability Report 2022

Comments/pagereference

Completeness(self assessment)

New suppliers that were screened using social criteria

N/A

Not reported

414-2

Negative social impacts in the supply chain and actions taken

N/A

Not reported

415

Public Policy

415-1

Political contributions

N/A

Not reported

416

Customer Health and Safety

416-1

Assessment of the health and safety impacts of product and service categories

N/A

Not reported

416-2

Incidents of non-compliance concerning the health and safety impacts of products
and services

N/A

Not reported

417

Marketing and Labeling

417-1

Requirements for product and service information and labeling

N/A

Not reported

417-2

Incidents of non-compliance concerning product and service information labeling

N/A

Not reported

417-3

Incidents of non-compliance concerning marketing communications

N/A

Not reported

418

Customer Privacy

418-1

Substantiated complaints concerning breaches of customer privacy and losses ofcustomer data

N/A

Not reported

419

Socioeconomic Compliance419-1

Non-compliance with laws and regulations in the social and economic area

N/A

Not reported

Disclosure

Description

414

Supplier Social Assessment

414-1

57

Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

SASB Index
The following index shows
TI Automotive’s sustainability
activities described in the context
of the industry-specific reporting
standards of the Sustainability
Accounting Standards Board(SASB) for automotive suppliers(Automotive Parts).

Disclosure

Comments/pagereference

Completeness(self assessment)

26

Partially reported(1) Total amount of waste from manufacturing, (2) percentage hazardous, (3)percentage recycled30

Partially reported

Number of recalls issued; total units recalled

N/A

Not reported

21, 24

Fully reported

N/A

Not reported

Description

Energy Management
TR-AP-130a.1(1) Total energy consumed, (2) percentage grid electricity, (3) percentage renewable

Waste Management
TR-AP-150a.1

Product Safety
TR-AP-250a.1

Design for Fuel Efficiency
TR-AP-410a.1

Revenue from products designed to increase fuel efficiency and/or reduce emissions

Materials Sourcing
TR-AP-440a.1

Description of the management of risks associated with the use of critical materials

Materials Efficiency
TR-AP-440b.1

Percentage of products sold that are recyclable

N/A

Not reported

TR-AP-440b.2

Percentage of input materials from recycled or remanufactured content

N/A

Not reported

Total amount of monetary losses as a result of legal proceedings associated with
anticompetitive behavior regulations

N/A

Not reported

TR-AP-000.A

Number of parts produced

N/A

Not reported

TR-AP-000.B

Weight of parts produced

N/A

Not reported

TR-AP-000.C

Area of manufacturing plants

N/A

Not reported

Competitive Behavior
TR-AP-520a.1

Activity Metrics

TI Fluid Systems plc | Sustainability Report 2022

58

Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

TCFD Index
The following index shows oursustainability activities describedin the context of the disclosure
recommendations for climate
reporting by the Task Forceon Climate-related Financial
Disclosures (TCFD). References are
made to TI Fluid Systems plc’s 2022
Annual Report.

Governance

Strategy

Risk management

Metrics andtargets

TI Fluid Systems plc | Sustainability Report 2022

TCFD recommended disclosures

Reference pages (from2022 Annual Report)

Compliance

Describe the board’s oversight of climate-related risks andopportunities

See Governance – Board of
Directors on pages 72–74

Consistent

Describe management’s role in assessing and managing
climate-related risks and opportunities

See Governance –Management on page 54

Consistent

Describe the climate-related risks and opportunities theorganisation has identified over the short, medium andlong term

See Background andFramework and Strategy
and Financial Planning on
pages 52–53

Consistent

Describe the impact of climate-related risks and opportunities
on the organisation’s business, strategy, and financial planning

See Strategy and Financial
Planning on pages 52–53

Consistent

Describe the resilience of the organisation’s strategy, taking into
consideration different climate-related scenarios, including a
2°C or lower scenario

See Strategy and Financial
Planning on pages 52–53

Consistent except only
one scenario used forsustainability transition

Describe the organisation’s processes for identifying andassessing climate-related risks

See Risk Management on
pages 54–55

Consistent

Describe the organisation’s processes for managing climaterelated risks

See Risk Management on
pages 54–55

Consistent

Describe how processes for managing climate-related risks areintegrated into the organisation’s overall risk management

See Risk Management on
pages 54–55

Consistent

Disclose the metrics used by the organisation to assessclimate-related risks and opportunities in line with its strategy
and risk management process

See Metrics and Targets on
page 56

Consistent

Disclose Scope 1, Scope 2, and, if appropriate, Scope 3
greenhouse gas (GHG) emissions, and the related risks

See Metrics and Targets on
page 56 and Sustainability on
pages 40–41

Consistent

Describe the targets used by the organisation to manage
climate-related risks and opportunities and performanceagainst targets

See Metrics and Targets on
page 56

Consistent59

Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

UN Global Compact Index
The following index serves as the2022 Communication on Progress
for TI Fluid Systems in relation
to the implementation of theprinciples of the UN Global Compact
and, in this regard, presents thesustainability activities described in
the context of the principles of the
UN Global Compact.

Topic area

Principle

Page reference

Human rights

1. Businesses should support and respect the protection of internationally proclaimed human rights.

6, 36

2. Make sure that they are not complicit in human rights abuses.

6, 36

3. Businesses should uphold the freedom of association and the effective recognition of the right tocollective bargaining.

6, 36

4. The elimination of all forms of forced and compulsory labour.

6, 36

5. The effective abolition of child labour.

6, 36

6. The elimination of discrimination in respect of employment and occupation.

6, 36–38

7. Businesses should support a precautionary approach to environmental challenges.

26–31

8. Undertake initiatives to promote greater environmental responsibility.

26–31

9. Encourage the development and diffusion of environmentally friendly technologies.

7–9, 21

10. Businesses should work against corruption in all its forms, including extortion and bribery.

48

LabourEnvironment

Anti-corruption

TI Fluid Systems plc | Sustainability Report 2022

60

Overview

The Group

Sustainability approach

Environment

SocialGovernanceAppendix

Glossary
AEVsautonomous electric vehicles

AI

artificial intelligence

BEVsbattery electric vehicles

D&I

diversity and inclusion

e-MIC

e-Mobility Innovation Centre

EVselectric vehicles

GDI

gasoline direct injection

HEVs

hybrid electric vehicles

HPD

high-pressure diesel

ICE

internal combustion engine

LEVs

low emissions vehicle

LTIF

lost time injury frequency

OEMoriginal equipment
manufacturer

PHEVs

plug-in hybrid electric vehicles

PZEV

partial zero emissions vehicle

SBTi

Science Based Targets initiative

SCR

selective catalytic reduction

SIB

ship-in-a-bottle

STEM

science, technology,
engineering, and maths

TAPT

tank advanced process
technology

UN SDGs

United Nations Sustainable
Development Goals

TI Fluid Systems plc | Sustainability Report 2022

61

TI Fluid Systems, Corporate Offices
2020 Taylor Road
Auburn Hills
Michigan 48326
United States of America
Tel: +1 248 296 8000
TI Fluid Systems plc, Registered Office4650 Kingsgate
Cascade Way
Oxford Business Park South
Oxford OX4 2SU
United Kingdom
Tel: +44 (0) 1865 871820
www.tifluidsystems.com
Incorporated and domiciled in England and Wales
Registered number 09402231