Essex Furukawa Magnet Wire LLC

Sustainability
ReportSEPTEMBER 2024

Vision 2030: A Sustainable Future, Our Driving ForceAs a pioneer in the magnet wire industry, Essex Furukawa stands tall on its long
history of innovation and reliability. As CEO, I am proud of our global teams andespecially pleased with the efforts—and results—that we are seeing from oursustainability journey. Our annual report affirms our commitment to transparency
and creating a sustainable future for all.
One of the major accomplishments highlighted in the report is an impressive
29% reduction in carbon emissions. This achievement reflects our ongoingcommitment to implementing sustainable practices to minimize ourenvironmental impact. We also are proud that our carbon reduction targets were
accepted by the Science Based Targets initiative (SBTi). The validation covers
both Scope 1+2 as well as Scope 3 emissions, confirming the efforts to reduce ourcarbon footprint across the entire Essex Furukawa operations and value chain.

Letter fromthe CEO“

As part of our broader Environmental, Social, and Governance (ESG) initiatives,
we made updates to our Supplier Code of Conduct—ensuring that suppliers
adhere to strict sustainability standards throughout the supply chain. By
strengthening this code, we aim to foster greater accountability among our
suppliers, ultimately driving positive change across the industry.
Lastly, we’ve added water conservation goals this year. In recognizing theimportance of responsible water management, we aim to implement measuresthat will reduce water consumption and promote sustainable water practices
throughout our operations.

We remaincommitted to ourcustomers, supportiveof our employees,
and active in ourcommunities.”

These accomplishments—and many others included—are a testament to thededication and hard work of our employees, partners, and stakeholders who haveembraced our Vision 2030 program for a more sustainable future.

Daniel Choi
President and CEO, Superior Essex
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Table ofContents
8

Vision 2030 Overview

10
11

18

ENERGY REDUCTION
19
21
22

WATER CONSERVATION
23

Disruptive Innovation
25

Agile Digitization
26
27
28

29

13

ZERO WASTE TO LANDFILLCARBON REDUCTION

28

12Green Production

RENEWABLE ENERGY89Key Highlights

5

7

9

Company Overview

4

6

8

Letter from the CEO

2

Holistic Sustainability

ACCOUNTABILITY, REPORTING,& GOVERNANCE

UN SDG PARTNERSHIPZERO WASTE TO LANDFILLWATER CONSERVATIONCARBON REDUCTION TARGETSRESPONSIBLE SOURCINGCIRCULAR ECONOMY

Sustainability Leadership Council

More for the Future

Appendix

RESOURCESPERFORMANCE DATA TABLES

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Company
Overview
As a globally diverse powerhouse in the magnet/winding wire
industry, Essex Furukawa consistently pushes the boundaries
of innovation and engineering. We lead these efforts across theglobe to foster lasting success for the customers we serve. Built
on more than 120 years of expertise, our teams form mutually
beneficial relationships with members of the automotive,commercial, residential, industrial, and energy markets. We
provide the products and services they need to flourish, andin turn, inspire their customers to thrive. Our advancements intechnology have been part of a decarbonization movement thatis increasing reduction efforts throughout the value chain. From
the newest electric vehicles, power transformers, and commercial
generators, we produce the magnet/winding wire that powers
the future.
Across North America, Europe, and Asia Pacific, Essex Furukawa
provides a broad range of copper and aluminum magnet
wire—enameled, wrapped, and extruded in both gauge andmetric sizes. We are the only magnet wire manufacturer that isvertically integrated, allowing seamless design, development,
sourcing, production, delivery, and availability of productson three continents.
Essex Furukawa is a global leader in magnet/winding wire
product innovation and manufacturing.
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KeyHighlights
29%

CO2 Reduction
Equivalent to the Sequestration Potential of
77,966 Acres of Forests Per Year1

9%

Renewable Energy Utilized
Equivalent to 8,528 Homes’ Electricity Use for
One Year1

9Plants Achieved ZWTL to Date2

3

Plants Achieved The Copper Mark
Assurance Process
Globally Recognized Standard for
Responsible Copper Production

22

Community Development Programs

90%

of Total Supply Chain Surveyed
for ESG Impact Upstream

43,331 MT
Recycled2

1 EPA Greenhouse Gas Equivalencies Calculator
2 Internal audit, numbers not third-party verified

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A Sustainable
Future, Our
Driving ForceVISION 2030

Essex Furukawa first announced, Vision 2030: A Sustainable
Future, Our Driving Force, in April of 2021. It shaped the futureof our business by declaring each decision, partnership, andinvestment we make to be driven by the common goal of creatinga sustainable future. Ultimately, we look to support the needs ofcurrent generations without sacrificing the needs of future ones.
Our Core Values of Green Production, Disruptive Innovation,
and Agile Digitization are the pillars through which we strive toachieve this Vision.
For Essex Furukawa, Green Production is the common thread thatis woven through all the Core Values. This focus positively impacts
our own production and influences our supply chain. It also aligns

Green
Production
Lead efforts in sustainability by reducing our waste, energy,
carbon, and water footprints globally

Disruptive
Innovation
Develop market changing products and services inpartnership with, and in support of, our customers

us with our customers in support of carbon reduction targets.
The goal of Disruptive Innovation is to change the magnet/winding
wire industry by introducing products, equipment, and production
methods to support and drive technological advancements throughthe supply chain. We will develop new ways to disrupt a century-old
technology to support our customers’ demand for materials,
products, and equipment. We will also deploy our resources to aid
them in enhancing their product performance and thereby support
sustainability efforts up and down the supply chain.
Our Agile Digitization goal is to become a world class, digitally savvy,

Agile
Digitizationcompany with a technology environment that seamlessly enables
business in collaboration with our employees, customers, suppliers,

Be a digitally savvy organization by being fully integrated,and partners. As we move forward with Vision 2030, our internalsustainably automated, and socially responsible

teams are focused on turning data into information and providing
people in production with insights to make better decisions.

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GreenProduction> Achieving and maintaining Zero Waste to Landfill status

The Vision 2030 mission for Green Production is to be theat all facilities globally

recognized leader in creating sustainable solutions within themagnet/winding wire manufacturing industry globally. We expect
to meet the needs of today as well as for the future in order to> Establishing and committing to utilizing Renewable Energy> Establishing and committing to Energy Reduction targets

support our customers and their ongoing sustainability efforts.

Green Production will meet Vision 2030 goals
by aligning with five definitive connections:> Establishing and committing to Carbon Reduction targets> Establishing and committing to Water Conservation targets

INITIATIVE

3-YEAR GOAL (2023)

7-YEAR GOAL (2027)

10-YEAR GOAL (2030)

Zero Waste toLandfill (ZWTL)

Achieve ZWTL status at all of ourplants globally

Monitor and maintain ZWTL
operations globally

Monitor and maintain ZWTL operations
globally

Renewable Energy1

17% renewable energy utilized

27% renewable energy utilized

32% renewable energy utilized

Energy Reduction1

3% energy reduction

6% energy reduction

10% energy reduction

Carbon Reduction2

N/A

N/A

Scope 1 and 2: 22.5% carbon reduction3
Scope 3: 22.5% carbon reduction3

Water
Conservation2

N/A

N/A

5% reduction in water usage

1 Utilized a 2019 baseline / 2 Utilized a 2021 baseline / 3 SBTi validated

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Zero Waste to Landfill

Energy Reduction

Continuing on a path to a sustainable future remains a focal

Energy reduction initiatives include all anticipated reductions

point for Essex Furukawa. Our effort to refine green production

from Essex Furukawa plants’ Scope 1 and Scope 2 energy

includes achieving Zero Waste to Landfill (ZWTL) across oursources (i.e., fuels and electricity) over the next 2023, 2027, andmagnet wire plants, metals processing facilities as well as2030 milestone years. All energy reduction calculations werechemical processing locations. For a plant to achieve ZWTL

benchmarked to production to show the plants increase in energy

status, at least 98% of all waste leaving the facility must be

efficiency to production.

diverted from landfill as well as from the downstream material
management organization accepting the waste stream.

Progress> Achieved 1.1% reduction in energy in 20232

Progress> 9 plant locations have achieved ZWTL status1

Renewable Energy
Essex Furukawa defines renewable energy as clean energy thatcomes from natural sources or processes that are easily replenishable.
Examples of renewable energy under investigation include solar,hydro, and wind power. Unlike our energy reduction goal, ourrenewable energy progress is based on total energy consumed. We
are continually researching possibilities to implement renewableenergy projects at each site, globally, to reduce our Scope 2 carbon
impact as well as enable green energy production where feasible.

Progress> Utilized 9% renewable energy in 20232

1 Internal audit, numbers not third-party verified
2 Compared to 2019 baseline

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Carbon Reduction

Water Conservation

In establishing our Scope 1, 2, and 3 carbon reduction goals,

In acknowledging a responsibility to contribute to the solution

Essex Furukawa has clearly stated its intention to reduceof water scarcity we have set water conservation goals forgreenhouse gas emissions across our global footprint. We now

the company, benchmarked to production. By implementing

have a defined path to that reduction as an organization as wellsustainable practices and innovative technologies, the company

as in support of our customers’ carbon reduction targets. Essex

aims to reduce its water consumption 5% by 2030 and minimize

Furukawa has established Science Based Targets following theits environmental impact. Essex Furukawa is focused on creating

Greenhouse Gas Protocol and aims to meet a 22.5% reduction

a positive and lasting impact on water resources by fosteringof Scope 1 and 2 emissions and 22.5% reduction in Scope 3

partnerships with stakeholders and sharing best practices bothemissions by 2030. In communicating these reduction targets

internally and externally.

and progress, Essex Furukawa will be able to catalyze additional
action—up and down the value chain—to reduce our holistic
carbon impact on the planet.

Progress> Newly established in 2023, will share progress in 2024.

Progress> Achieved 29% reduction in Scope 1 and 2 emissions
in 20233> Achieved 70% reduction in Scope 3 emissions in 20233

3 Compared to 2021 baseline
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Disruptive
Innovation
We will measure success against our ability to create

We feel that our connection points internally can lead to

disruptive innovation in material and production

improvements across the value chain, by being able to support:

methods. That means, by 2030 we want:> New products that do not use harmful solvents> Innovation of process and expansionof new production methods> Reduction of carbon dioxide emissions by 50%
for new products and new production methods
developed specifically in our global R&D
Innovation Centers> The proliferation of Electric Vehicles (EVs) and support
efficiencies across the transportation industry> The advancement of the energy & utility sectors byenabling renewable energy technology> The electrification of buildings through energy
efficient technology> The efforts across multiple industries to reduce
environmental impact throughout the life cycle

In addition, we look at 2050 as an opportunity to be carbon
neutral for all our new products and production methods
developed in our global R&D Innovation Centers.
Essex Furukawa is committed to supporting a sustainable
future for all through Disruptive Innovation. By collaboratingwith our customers to support the Energy, Commercial,
Residential, Industrial, and Automotive markets in newtechnology, we can support a lower carbon economy to reduceoverall impact across these industries.

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AgileDigitization
We view the digitization of buildings, communication, and technologies now and into
the future as an opportunity to enable the interconnectivity of all infrastructure. In
order to support a more sustainable world, we are taking the following measures:

FULL
INTEGRATION
Full integration enables connected

GREEN
TECHNOLOGYSUSTAINABLE
AUTOMATIONSOCIAL
IMPACT

Through Green IT (Information

Streamlining the process ofBringing social value todigital ecosystems, supports

Technology) as well as Green OT

data collection and generating

the communities we serve

the data and supply chains(Operational Technology), we aresustainability-related metrics

with commitments tothat are securely connected todeveloping platforms and technologies

to leverage green recycling,

United Nations Sustainableinteroperable systems, and aligns

that enable 100% e-waste recycling

enabling harmonious human-

Development Goals

to global industry standards

and power efficient operations

to-machine interaction(UN SDGs)

We are expanding transformational

Essex Furukawa is focused on delivering multiple accomplishments to complete ouroperational analytics in a global

Vision 2030 mission with advanced operational technologies over the next decade, including:effort to make real time, data
guided decisions, thus creating>

operational efficiencies. We are also
implementing several technologies
to leverage cloud-based technology>

Implementing best of breed cyber security

and empowering local teams withsystems cybersafe

technology & knowledge to best serve

Converging IT and OT to leverage synergies

our customer’s needs>

our businesses>

Implementing agile ways of working

capabilities to keep our data, information andand deliver world class IT/OT capabilities toand reduce our carbon footprint.

>

Utilizing artificial intelligence and machinelearning to improve efficiencies of our
production systems across all facilities globally

Leveraging data collection of sustainability
metrics to inform strategic decision making>

Utilizing blockchain to develop supply chaintransparency and end-to-end product life
cycle analysis
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Holistic
Sustainability

Zero Waste
to Landfill

To achieve our Vision 2030 goals, Essex Furukawa
has further defined a holistic sustainability approach
for achieving a sustainable future. These seven petals
create specific and measurable action items that

Accountability,
Reporting, &Governance

Circular
Economywill help quantify the successes as well as identify
opportunities for improvement within the organization.

CarbonReduction
Targets

Responsible
Sourcing

Water
Conservation

UN SDG
Partnership

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Accountability,
Reporting, & Governance
As a corporation, Essex Furukawa places a high value on

Youth development is a common priority across many of oursustainability and environmental conservation. Our compliancelocations. While we sponsor a range of local youth activities suchwith multiple environmental directives and regulations is a

as athletics, we also recognize the importance of education andtestimony to our commitment. Through consistent communication

have forged partnerships with schools to support mentorshipefforts of our data, goals, and metrics, we are able to establish

programs, educational resources, and provide financial assistancetransparency both internally and externally with our stakeholders.

to help students to overcome obstacles and reach their

We created a Sustainability Leadership Council to track ongoingfull potential.

1

impact reductions, develop a Corporate Sustainability Report andfurther our commitments to social responsibility.

Accountability

In addition to supporting young people, the company is dedicatedto addressing resource insecurity affecting the community. Our
teams partner with local charities to donate food, clothing, andtoys throughout the year. The company also hosts the Phenie

Essex Furukawa firmly believes we have a moral obligation toStreet Food Pantry on its Fort Wayne campus, which provides

prioritize environmental preservation and well-being in communities

a vital resource for individuals and families who may not havein which we operate. This belief extends beyond integrating

access to sufficient food sources. The pantry is adjacent to a Little

sustainability into our business operations; since each of our

Library which aims to promote literacy by providing free access to

global locations are unique, and the specific community needs

books for readers of all ages.

vary, we rely on each plant to determine which local initiatives will
be most impactful.
Community Development

We also value the dedication and bravery of local first responders.
The company regularly donates to fire and police departments,
supporting their efforts to keep the community safe.

Driven by a belief in the power of collective action, we aim tocreate a positive and lasting impact on the communities in which
we operate. Through a combination of volunteerism and monetarycontributions, the company actively invests in outreach efforts to
support local initiatives.

1 Essex Furukawa Magnet Wire considers a stakeholder to be an individual or groupthat can affect or be affected by our business; or has a vested interest in thedecisions made and implemented by our leadership teams. As a privately heldcompany with a global footprint, stakeholders can include governments or regulators,
joining board members, employees, customers, suppliers, and the communities
surrounding our locations.
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Accountability—cont.
Environmental Stewardship
Many of our locations have chosen to invest time and service tothe beautification of the surrounding areas of the community.
Annual tree planting initiatives aim to expand the green canopy
around our plants and have resulted in hundreds of native trees
being planted over the years. Local community street and rivercleanup initiatives are organized for the betterment of the areas
around our facilities. Through these and additional efforts acrossReporting> Annual Report | We are committed to transparency throughconsistent communication to our stakeholders. Our third
annual sustainability report supports this commitment.
> Carbon Disclosure Project (CDP)2 | Since 2010, Essex
Furukawa has been reporting metrics to customers throughthe CDP—a global disclosure system for environmental
transparency of companies.
> EcoVadis2 | Since 2013, Essex Furukawa has been

our global footprint, Essex Furukawa aims to reduce its impact onreporting to many customers through EcoVadis—an ESG

the environment and contribute to a greener future.

assessment tool for evaluation of a company’s integration ofSocial Impact
In addition to the environmental stewardship and community
development initiatives spearheaded locally by our plant teams,
employees are encouraged to give back to specific causes that
hold meaning to them.
> Dollars for Doers | Essex Furukawa supports the generous
spirit of volunteerism showcased by our employees. In
support of those individual passions, we will give to eligible
501(c)(3) organizations a grant matching the time donatedto further support causes that are important to our team.
> Matching Gifts | The Matching Gifts program offers
employees the opportunity to receive a matching
contribution for non-profit organizations. We will matchsustainability into business.
> Environmental Certifications | Many of our plants aroundthe world have received environmental certifications. Details
can be found in the Appendix.
> The Copper Mark Partnership | The Copper Mark is anassurance framework to promote responsible production
practices within the copper industry. Superior Essex, parent
company of Essex Furukawa, became the eighth corporate
partner of The Copper Mark in May 2021.
> The Copper Mark Semis-Fabricator Pilot Certification |In June of 2024, three of our North American plants
achieved The Copper Mark Assurance Process—Fort Wayne, IN, Franklin, IN and Columbia City, IN.

employee contributions of $25 or more, up to $1,500 per
employee, per calendar year.

2 Both CDP and EcoVadis are reported at the Superior Essex parent company level.
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Reporting—cont.
> UN Sustainable Development Goals Alignment |GovernanceEssex Furukawa has earned the reputation of a company with the

The UN SDG program was launched in 2015 as part of its

highest integrity—producing and delivering quality products with

2030 Agenda for Sustainable Development and includes

outstanding customer service. We are proud not only of what

17 Sustainable Development Goals. They recognize that

we are accomplishing, but of how we are achieving success. To

ending poverty and other deprivations must go hand-in-

protect this reputation, we continually strive to serve the best

hand with strategies that improve health and education,interests of our customers, employees, and all stakeholders, while

reduce inequality, and spur economic growth—all while

behaving as a responsible corporate citizen. This commitment

tackling climate change and working to preserve ourrequires, among other things, that we act with the highest ethicaloceans and forests.

and legal standards.

> Vision 2030 Goals | Essex Furukawa is working towards

Our commitment to the highest standards of integrity begins

achieving waste, energy, carbon, and water reduction goals

with ensuring that everyone across Essex Furukawa understands

while increasing renewable energy usage for the 2023, 2027,

our core values—values that define how we conduct ourselves.

and 2030 milestone years.

These values are the foundation of our Code of Ethics.
Additional information and guidance is available in ourStandards of Business Conduct.

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Governance—cont.
Policies

Conflict Minerals Policy
Supplier Code of Conduct

Essex Furukawa, including its subsidiaries, supports theWe’ve updated our Supplier Code of Conduct establishinghumanitarian goal of ending violence in the Democratic

standards to ensure that working conditions in our supply

Republic of Congo (DRC) and is committed to thechain are safe and that workers are treated with respect andresponsible sourcing of conflict minerals throughout its

dignity. It also established an understanding that businesssupply chain. Accordingly, Essex Furukawa has adopted aoperations are environmentally responsible and conductedconflict minerals policy and expects all of its suppliers to

ethically. Our supply chain partners must operate in full

adopt a similar policy and meet the expectations set forthcompliance with the laws, rules and regulations of theherein. In support of this policy, Essex Furukawa will only

countries in which it operates, but furthermore must draw

purchase products that contain DRC conflict free minerals.3

upon internationally recognized standards to advance social

Essex Furukawa has conducted due diligence regardingand environmental responsibility and business ethics.

all of the products it manufactures and distributes todetermine the presence of any conflict minerals and where
they are sourced.

Human Rights Policy
Essex Furukawa, including its subsidiaries, are committed toacting with integrity in everything we do. We are dedicatedEnvironmental Policy

to conducting business in a manner that respects, protects,

It is the established policy of Essex Furukawa to conduct

and supports the advancement of human rights around theits affairs in an environmentally responsible manner. We

globe. We strive to uphold the global standards outlined inare committed to reduce the environmental impacts of our

the United Nations’ Universal Declaration of Human Rights

activities, products, and services to preserve and protect

for responsible, integrity-based business, including

the natural environment including the air, water, land andnon-discrimination, equal opportunity, the freedom

other natural resources.

to associate and bargain collectively, the eliminationof modern slavery, human-trafficking and harmful or
exploitative forms of child labor.

3 “DRC conflict free” means that a product does not contain conflict minerals
necessary to the functionality or production of that product that directly or
indirectly finance or benefit armed groups as defined in SEC Rule 13p under
the SEC Act of 1934.

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Governance—cont.

Waste Mitigation Hierarchy

Pollution Mitigation Hierarchy

Essex Furukawa is committed to holistic sustainability andEssex Furukawa established the following prioritizedunderstands the responsibility to consider the potential

protocol in an effort to address potential impact of pollutants

impact our manufacturing processes may have on

from our manufacturing processes and avoid biodiversity

the environment.

loss. It is a framework designed to reduce the negative

To ensure all waste streams are handled responsibly,
an annual Zero Waste to Landfill audit is conducted ateach plant. Furthermore, we adhere to the following
comprehensive steps for all waste reduction:

impact of hazardous, non-hazardous, and inert waste on theenvironment as well as positively contribute to community
health through avoidance, minimization, restoration,and offsets.
> Avoid | By designing out—or substituting for—harmful
chemicals and raw materials we can avoid potential

1.

2.

ReduceRe-usenegative impacts.

> Minimize | Our ability to minimize pollutants emitted
during the production of our products will also reduce
potential impact on the surrounding areas.

3.

Recycle> Restore or Rehabilitate | Together, we can rehabilitate orrestore impacted environmental areas and communities

4.

Recovery
Disposal

5.

affected by pollutants.

> Offset | As a last option, we attempt to offset any impacts
that could not be mitigated through the first three initiatives.

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UN SDG
Partnership

Essex Furukawa has aligned sustainability efforts with those of the UN Sustainable
Development Goals, committing to 12 out of the 17 UN SDGs.1 This partnership enables
our organization to identify common purposes and opportunities for action with otherstakeholders, while collaborating to achieve a better and more sustainable future for all.
1 Committed at the parent company level as Superior Essex.

Goal

3
AFFORDABLE AND
CLEAN ENERGY• Renewable Energy Goals

Goal

10
CLIMATE ACTION• Energy Reduction Goals• Renewable Energy Goals• Carbon Reduction Goals• Tree Planting in Suzhou• Water Conservation Goals

GOOD HEALTH
AND WELLBEING• Environmental Policy• Food Pantry and Little Library• River Cleanup in Japan• Tree Planting in Suzhou• Employee Work-life

Balance Programs

Goal

7
REDUCEDINEQUALITY• Human Rights Policy• The Copper Mark• Employee Career Growth

Programs• Supplier Code of Conduct

Goal

13

Goal

5
DECENT WORK AND
ECONOMIC GROWTH• The Copper Mark• Disruptive Innovation• Human Rights Policy• Supplier Code of Conduct

Goal

11
PEACE, JUSTICEAND STRONG
INSTITUTIONS• Human Rights Policy• The Copper Mark• Supplier Code of Conduct

GENDEREQUALITY• Human Rights Policy• Supplier Code of Conduct

Goal

8
SUSTAINABLE CITIESAND COMMUNITIES• Environmental Policy• Air Permitting• Disruptive Innovation• Torreón Grey Water Reuse• Tree Planting in Suzhou• The Copper Mark

Goal

16

Goal

6

CLEAN WATER
AND SANITATION• The Copper Mark• Environmental Policy• Torreón Grey Water Reuse• River Cleanup in Japan• Water Conservation goals

INDUSTRY,INNOVATION AND
INFRASTRUCTURE

Goal

9

• Energy Reduction Goals• Renewable Energy Goals• Disruptive Innovation• SAF Partnership with

Delta Air Lines

Goal

12

RESPONSIBLE
CONSUMPTION
AND PRODUCTION• The Copper Mark• ZWTL• Accountability & Reporting• Supplier Code of Conduct• Torreón Grey Water Reuse• Water Conservation Goals

PARTNERSHIPSFOR THE GOALS• Alignment with 12 of

the 17 UN SDGs

Goal

17

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Zero Waste
to Landfill
The Essex Furukawa regional teams completed a Zero Waste to> Torreón (Mexico) and Fort Wayne, Indiana (U.S.)

Landfill (ZWTL) assessment for 2023 and is awaiting verification

both achieved a 98% diversion rate, maintaining theirfrom an independent, third-party. The internal assessment

ZWTL status.

found that four plants in North America, three in Europe, andtwo in the Asia Pacific region achieved a level required for
ZWTL designation. Six of our plants were found to have 100%
diversion rates as Bramsche (Germany) improved over its 99%
rating last year.
Numerous plants in North America took a step forward this year
as the cumulative diversion rate went from 95% to 97%. The sevenlocations combined to divert just over 31,000MT of waste.

> Simcoe (Ontario, Canada) saw a reduction down to 97%,
losing its status, while the Chemical Processing Centerin Fort Wayne, Indiana (U.S.) improved its diversion rate
to 96%.
> Additionally, the Franklin, Tennessee (U.S.) Magnet Wire
plant was found to have a diversion rate of 86% on its
ZWTL assessment, which was an improvement overthe last assessment.

> Franklin, Indiana (U.S.) maintained its 100% diversion rate
for a third consecutive year.
> The Metals Processing Center (MPC) located inColumbia City, Indiana (U.S.) improved from 95% diversion
to its first qualifying rate of 99% through increased
recycling efforts.

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European plants in Serbia and Germany all maintained Zero Waste

The plants in the Asia Pacific region have had two locations retain

to Landfill status during the latest evaluation cycle.

the ZWTL status.

> Zrenjanin (Serbia) retained its 100% diversion rate for the> Kameyama (Japan) as well as Suzhou (China) boththird year.

maintained the Zero Waste to Landfill distinction, eachachieving 100% diversion for the second year in a row.

> Bad Arolsen (Germany) maintained its 100% diversion rate

> Malaysian plants in Penang and Kuala Lumpur continue toas well.

work toward achieving ZWTL status having both increased> While Bramsche (Germany) also improved to 100%.

their diversion rate over last year. Penang was assessed at
97%—up 5%—with Kuala Lumpur climbing a percent to 96%.
Cumulatively, Essex Furukawa achieved a 98% diversion rate
globally achieving the Zero Waste to Landfill distinction. It diverted
over 45,000MT from the landfill.

100%

98%

97%

98%

99%

96%

86%

Franklin, IN

Fort Wayne, IN

Simcoe, Canada

Torreón, Mexico

Columbia City, IN

Fort Wayne, IN

Franklin, TN

Magnet Wire Plant

Magnet Wire Plant

Magnet Wire Plant

Magnet Wire Plant

Metals Processing
CenterChemicalProcessing Plant

Magnet Wire Plant

100%

100%

100%

100%

100%

96%

97%

Zrenjanin, Serbia

Bad Arolsen,
Germany

Bramsche,Germany

Kameyama,Japan

Suzhou, China

Kuala Lumpur,
Malaysia

Penang, Malaysia

Magnet Wire Plant

Magnet Wire Plant

Magnet Wire Plant

Magnet Wire Plant

Magnet Wire Plant

Magnet Wire Plant

Magnet Wire Plant
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WaterConservation
Essex Furukawa believes in holistic sustainability and understands

We have worked with our regional teams to create an action planthat it is an ever-changing landscape. As such, we are proudto achieve these goals. Our Torreón, Mexico plant has initiatedto have added our commitment to water conservation. As aa grey water project that has been so successful that local

responsible corporate citizen, we also recognize the importancecommunity leaders are investigating how it can be used for theof protecting local water supplies to ensure the long-term viability

municipality. A sidestream filter which aids in removing impuritiesof the communities in which we operate. By understanding theand reduces water waste was installed at our Metals Processing

critical link between water scarcity and public health, the company

Center in Columbia City, IN. Additionally, we have launchedaims to take proactive measures to address this pressing issue.

numerous projects across our global footprint related to our boilers

Water scarcity is a growing concern that affects millions of people

and cooling towers for more efficient water use. We have also

globally, posing a threat to public health, food security, andmade metering and filtration upgrades.

economic development.

Essex Furukawa recognizes that collaboration is key to addressing

Collectively, we acknowledge our responsibility to contribute to thewater scarcity effectively. The company is committed to working

solution and set new water conservation goals for the company. Byclosely with local communities, governments, and stakeholders to

implementing sustainable practices and innovative technologies,

develop comprehensive water management strategies. By fostering

we aim to reduce its water consumption and minimize its

partnerships and sharing best practices, Essex Furukawa aims toenvironmental impact.

create a positive and lasting impact on water resources.

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Essex Furukawa Magnet Wire LLC Sustainability Report | 09-2024

CarbonReduction Targets

Carbon Emissions
Scope 1 - 6%
Scope 2 - 6%
Scope 3 - 88%

Essex Furukawa has set carbon reduction targets to provide our
employees as well as partners with a clearly defined path to reducegreenhouse gas emissions as an organization. We believe that
communicating our carbon reduction targets and progress will
catalyze additional action up and down the value chain.
By 2030, we aim to reduce Scope 1 and 2 emissions by 22.5% froma baseline year of 2021. Additionally, we are committed to reducing
Scope 3 emissions by the same percentage within the same
timeframe. These goals were validated by Science-Based Targets
initiative (SBTi) in November 2023. We are proud to announce a

Scope 3 Emissions
We continue to analyze ESG data from our supply chain to better
understand the impact on our Scope 3 emissions. In 2023, we madesignificant progress in determining Scope 3 emissions with moreaccuracy, and found it accounted for 88% of our total emissions with
77% coming directly from our suppliers.

29% reduction in Scope 1 and 2 emissions in 2023. This achievement

In 2023, we reduced Scope 3 emissions by 70%, which included

is primarily attributed to strategic investments in renewable energy

a 72% reduction in our upstream emissions, compared to thesources across China, Germany, Japan, and Malaysia.

2021 baseline.

As part of our commitment to sustainability, we conducted

By evaluating Scope 3 emissions, which encompasses indirectcomprehensive lifecycle assessments (LCA’s) on two of our key

emissions resulting from our activities, the company gains a

product types: traditional enameled copper magnet wire andcomprehensive understanding of its carbon footprint. This

extruded resin aluminum magnet wire. These assessments weredata-driven approach enables Essex Furukawa to analyze theperformed using the cradle-to-gate method, ensuring a thoroughsupplier information, hold stakeholders accountable, and allows us

evaluation of the environmental impact from the mine, throughout

to make informed sourcing decisions.

our entire production process until it leaves our facility.
As a company, we remain committed to driving sustainable
practices across the wire and cable industry. By prioritizing
renewable energy investments and implementing rigorous
environmental assessments, we are taking proactive steps towards
a greener future.

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Essex Furukawa Magnet Wire LLC Sustainability Report | 09-2024

Responsible
Sourcing
Essex Furukawa is focused on the responsible sourcing ofmaterials used in our manufacturing processes, including thatof copper. This approach is one that is actively conscious about

Green Copper
As many of the markets we serve become increasingly interested
in reducing carbon impact, Essex Furukawa recognizes the needfor more environmentally friendly alternatives. While the supply
chain is not yet equipped to meet the broad requests for “green
copper,” we are encouraged by the many advancements being
made both internally and externally.

procuring products in ethical, sustainable, and socially conscious

Essex Furukawa also stands out from its competitors by having aways. We also hold ourselves accountable to understanding thededicated sustainability team committed to making sustainability

impacts of our supply chain including investigating potential risks,a priority for the industry. We are ready to assist customers inopportunities for improvement, and information gaps as well as

navigating the new landscape of decarbonization and responsible

communicating them to all stakeholders.

resource use. By collaborating directly, we aim to provide tailored,

As we continue to gain detailed insights into our supply chain, we
made the decision to merge the holistic pillars of Supply Chain
Transparency with Responsible Sourcing for a more comprehensive
approach as these insights directly affect our purchasing policies.
Furthermore, these insights have helped inform a revised Supplier
Code of Conduct, drawing from internationally recognized
standards to advance social and environmental responsibility as
well as business ethics.

reliable solutions that meet mutual sustainability objectives while
ensuring the highest quality and performance standards.
Recycled Copper> We internally recycle all excess copper from magnet wire
production at our North American plants at our Metals
Processing Center—similar recycling occurs globally. Many of
our suppliers also recycle copper in their cathode production.
Low-Carbon Copper> Our customers in Europe are now able to select a lowcarbon cathode with less than 1.5kg of CO₂ emissions per
kg—which is less than half of the global average presented
by the International Copper Association (ICA).

Essex Furukawa Magnet Wire LLC Sustainability Report | 09-2024

Strategic Partnerships
The Copper Mark

Waybridge> The greatest influence on our carbon footprint is that of our> In an effort to improve efficiencies and reliability in our

supply chain and copper extraction. Guided by this data, we

supply chain, we have invested in technology that improves

partnered with The Copper Mark in 2021 to better define

logistics, provides increased predictive data, and aids in thewhat sustainable, responsible sourcing and production of

reduction of—with the goal of eliminating—stockouts.

copper products does to impact the value chain.
> We expanded our partnership with The Copper Mark by> Our operating system tracks the progress of raw material
shipments to our plants, which allows us to be proactive inparticipating in the Semis-Fabricator Pilot. In June of 2024,

addressing any potential supply chain issues before they

three of our North American plants achieved The Copper

affect us, and ultimately our customers downstream.

Mark Assurance Process—Fort Wayne, IN, Franklin, IN and
Columbia City, IN.
> Currently, 83% of the copper we source in North
America is supplied from facilities which have achieved
The Copper Mark and we are actively seeking additionalsources globally. We are participating in the Chain of Custody

Assent> In an evolving Environmental, Social, and Governance (ESG)
paradigm, we find it necessary to collect, aggregate, andreport certain data related to sourcing activities.
> We have contracted with a third party to engage our most

Pilot—which includes some of these certified stakeholders

critical suppliers to collect and validate this information

upstream, as well as stakeholders downstream.

related to our supply chain.

40
Suppliers
Surveyed

90%of Total Spend
Represented

43%
Supplier
Response Rate

54%

Supplier ESG
Performance Score
24

Essex Furukawa Magnet Wire LLC Sustainability Report | 09-2024

Circular
EconomyEssex Furukawa looks at a circular economy as a system thattackles global challenges like climate change, waste, pollution, andbiodiversity loss. In aligning that definition with Vision 2030 pillars,
we believe it will naturally create a system that improves the life
cycle of our products, contributes to our carbon reduction goals,
and pairs with our customers’ values.

Recycled Copper
To help eliminate waste and reduce energy consumption from themining of raw materials, we recycle excess copper from magnet
wire production in our North American plants at our Metals
Processing Center—and have similar processes in place for our
locations globally.

Zero Waste to Landfill
Meeting the global Zero Waste to Landfill goals of Vision 2030
includes upcycling. There are byproducts in our production processthat are diverted from landfills through partnerships with outside
markets and industries that can re-use those materials.

PackagingWe regularly evaluate our packaging designs to meet the needs ofour customers. That process can include reuse, refurbishment, or
altogether rethinking our shipping methods—without sacrificing thesecurity and strength required to keep products safe. It also allows us
to inject additional sustainability efforts into that process.
One example of this packaging innovation comes from our teams
in Europe and Asia who are embracing returnable, recycled plastic
pallets which yield a higher quality, longer lifespan, and a lighter
shipping weight over wooden ones. Not only does this initiative
support a more environmentally conscious supply chain, but this isalso a significant step in promoting a closed-loop system of reuse
and minimizing waste.

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Essex Furukawa Magnet Wire LLC Sustainability Report | 09-2024

Sustainability
LeadershipCouncil
The Essex Furukawa Sustainability LeadershipCouncil (SLC) was created in 2021 to further advance

Disruptive Innovation Subcommittee
Led by R&D leaders from around the globe, this subcommittee reports on key
initiatives being developed by our MagForceX® Innovation Center teams in supportof the Disruptive Innovation goals to innovate both material and production
methods that are less impactful on our environment.
The group is led by our SVP of Global Operations and Global R&D. It also includes
the VP of Global R&D, the VP of the North America Innovation Center, as well as the
Director of the Japan Innovation Center.

Agile Digitization Subcommittee

the initiatives of Vision 2030. The SLC includes key

Essex Furukawa is a digitally savvy organization that recognizes the capability of

stakeholders from across the organization, selected

technology. We are currently implementing efficiencies and best practices acrossto offer well-rounded but differing perspectives on

our global footprint.

the business. The group meets regularly to provide
insights from internal and external communications
as well as make suggestions regarding the future of
our holistic sustainability efforts. The goal of the SLC
is to ensure that Vision 2030 is ever-present in ourdecision making.
In addition to the SLC, three subcommittees
were developed to focus on other key areas—
Disruptive Innovation, Agile Digitization, andResponsible Sourcing.

Led by our Chief Information Officer, and Manager of Business Systems, thissubcommittee reports on the progress made by the IT and OT teams—both ofwhich are working towards ensuring our systems are fully integrated, sustainably
automated, and socially responsible.

Responsible Sourcing Subcommittee
As part of reducing our environmental impact, this subcommittee seeks to better
understand the role that our supply chain plays in accomplishing Vision 2030
goals. It aims to reduce that impact by ensuring purchasing decisions are madein a responsible manner that considers the impact on the environment, and thecommunity as well as ensuring quality and cost controls.
Led by the Global VP of Strategic Sourcing, this subcommittee also includes theStrategic Sourcing Analyst. The committee reports on the mapping of our supply
chain, offers information on practices and performance, as well as investigates
potential risks, opportunities for improvement, and information gaps in data.

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Essex Furukawa Magnet Wire LLC Sustainability Report | 09-2024

More forthe Future
Essex Furukawa is proud of the steps taken since thelaunch of Vision 2030 and we are excited for that
progress to continue long into the future. This annual
sustainability report is a fundamental marker on our
holistic sustainability journey. The commitment toenvironmental, social, and corporate governance requires
transparency, benchmarking, and remaining nimble in anever-changing landscape.
Over the next year Vision 2030 will evolve toinclude additional projects designed to meet
our own expectations as well as the priorities ofour customers. Several such plans include:>

Completing a third magnet wire product
Life Cycle Assessment (LCA) in 2024 and two
additional in 2025.

>

Consider expanding The Copper Mark certification atother global locations>

Continued investment in renewable energy>

A program focus on social impact>

Begin changing our reporting structure to meetinternational standards
27
Essex Furukawa Magnet Wire LLC Sustainability Report | 09-2024

Appendix

Click to Navigate to External Resources

Resources
Several initiatives in support of Vision 2030, and our holistic sustainability program areunderway since July 2023 including:> Essex Furukawa Plants First in Magnet Wire Industry to Achieve The Copper Mark> Essex Furukawa Employees Join Forces to Clean Up Local Neighborhood> Franklin Plant Shines Light on Safety by Prioritizing National Safety Month> Manufacturing Manager Inspires Young People and Advocates for Skilled Trades> Essex Furukawa Operator Gives Back to Local Elementary Schools
Through Art Workshops> Suzhou Employees Continue Tradition of Tree Planting to Promote Sustainability andCommunity Engagement> Assurance Process• Keramida, Inc.
• ARCHE Advisors> Environmental Management System (EMS)
Certification• ISO 14001-2015- Bramsche (Germany) Magnet Wire Plant- Bad Arolsen (Germany) Magnet Wire Plant- Zrenjanin (Serbia) Magnet Wire Plant- Kuala Lumpur (Malaysia) Magnet Wire Plant- Penang (Malaysia) Magnet Wire Plant- Suzhou (China) Magnet Wire Plant- Kameyama (Japan) Magnet Wire Plant> Celebrating International Women’s Day at Torreon Plant- Torreón (Mexico) Magnet Wire Plant> Essex Furukawa Employees in Simcoe, Canada Donate to Those in Need

- Columbia City, IN (U.S.) Metal Processing Center> Essex Furukawa Spreads Joy with Thanksgiving Turkey Giveaway, Food Bank Donation> Fort Wayne Campus Adds Bailer to Promote Sustainable Waste Management- Franklin, IN (U.S.) Magnet Wire Plant pending,
expected 2025

> Energy Management System (EnMS)> Essex Furukawa Receives Carbon Reduction Goal Approvals from SBTi

Certification> Essex Furukawa Conducts Safety Demonstrations in Serbia• ISO 50001-2018/2011> Fall Festival Bring Lacroix + Kress, Essex Furukawa Family Together> HR Coordinator Keeps Her Cool as Wildfires Heat Up> Torreon Plant Receives Recognition from Mexican Government for Environmental Efforts> Plastic Pallets Helping to Close the Loop on Circular Economy> Family Summer Festival Brings Joy and Entertainment to Japan Plant
Visit our website and LinkedIn for the latest Vision 2030 news and to track
all our progress to date.
Sign up for our newsletter.

- Bramsche (Germany) Magnet Wire Plant- Bad Arolsen (Germany) Magnet Wire Plant> Occupational Health and Safety
Management System (OHSMS) Certification• ISO 45001-2018- Suzhou (China) Magnet Wire Plant- Penang (Malaysia) Magnet Wire Plant• JISHA OSHMS- Kameyama, (Japan) Magnet Wire Plant
28
Essex Furukawa Magnet Wire LLC Sustainability Report | 09-2024

Appendix—cont.
Performance Data Tables1—Environment

Emissions> Greenhouse Gas Emissions (GHG)2 | MT CO2e

Energy

2021

2022

2023

Scope 1

94,96586,76981,320

Scope 2

136,742

92,32081,782

Scope 33

3,874,458

1,300,682

1,153,575

231,707179,089

163,102> Energy Consumption | MWh/MT

2019

2021

2022

2023

Non-renewable Fuels
Purchased and Consumed

1.383

1.332

1.330

1.325

Non-renewable
Electricity Purchased

0.777

0.814

0.612

0.618

Total Non-renewable
Energy Consumed

2.160

2.146

1.942

1.943

Total Renewable Energy
Purchased or Generated

0.004

0.003

0.216

0.196

Total Energy
Consumption

2.163

2.149

2.158

2.138

Water

Total (Scope 1 & 2)

> Air Emissions | MT

2022

2023

189

204

256

Organic Compounds

Waste> Waste Diversion | MT

Recycled> Water Usage and Utilization | m

2021

2021

2022

2023

29,647

21,82543,331

87

173

1,826

2021

2022

2023

Waste to Energy (WTE)

Total Water Withdrawn

539,155

600,052

642,014

Landfilled

1,035

1,020

1,086

Water Consumption

169,347

185,927

200,918

Total Diversion Rate

97%

96%

98%

Total Water Discharged

369,808

414,125

441,096

Environmental Events

1 Values include air emissions, water usage, and energy consumption at our
manufacturing locations only
2 Following Greenhouse Gas Protocol Market-Based Approach

2021

2022

2023

Reportable Spills or Releases ofHazardous or Toxic Chemicals

0

0

0

Number of Significant
Environmental Events

0

0

0
29

Essex Furukawa Magnet Wire LLC Standards of Business Conduct | 09-2024

Appendix—cont.
Performance Data Tables—Social

Human Rights

Employment> Workforce Demographics

2021

2022

2023

0

0

0

Gross Human Rights Violations

2021

2022

2023

Number of Employees

2,060

2,128

2,171

Aged <30

19%

19%

18%

Aged 30–50

50%

51%

51%

Aged >50

31%

30%

31%

Total Women Employed

12%

13%

12%

Performance Data Tables—Supply Chain

Total Women in Leadership Positions3

2%

2%

2%

Supplier ESG Metrics

2021

2022

2023

Total Sites Covered by an Occupational
Health and Safety Management System

14%

14%

14%

Total Workplace Fatalities

0

0

0

Total Workforce Recordable
Incident Rate4

11.70

12.84

13.22

Occupational Health and Safety

Local Communities

Total Number of Local Community
Development Programs

2021

2022

2023

5

8

22

Performance Data Table—Financial
Financial | USD

2023
Disclosure of Payments to Government5

1,424,883

2022

2023

Total Number of Suppliers Requested

40

40Percent of Total Spend

80%

90%

Response Rate

29%

43%

2022

2023

Environmental

42%

40%

Social74%

69%

Governance

66%

66%

Overall

60%

54%

Supplier Performance Score

3 Managers and above
4 International Incident Rate
5 Environmental compliance costs and fees

30
Essex Furukawa Magnet Wire LLC Standards of Business Conduct | 09-2024

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