Essex Furukawa Magnet Wire LLC

Sustainability
Report
AUGUST 2023

Vision 2030: A Sustainable Future, Our Driving ForceLetter fromthe CEOAt Essex Furukawa Magnet Wire, we are uniquely positioned as one of the global leadersin our industry. That status comes with numerous expectations and among them is to be a
responsible corporate citizen in the worldwide marketplace.
Through the guiding principles of Vision 2030, we strive to make each decision,
partnership, and investment with the goal of finding solutions that are both beneficial to
the strength of our business as well as the health of the planet.
We are leading the industry by partnering with our customers to provide Disruptive“

Innovation solutions that evolve the traditional magnet wire market. Agile Digitization
efforts are improving manufacturing technology as well as spreading best practices
across locations on three continents. Our pioneering Green Production methods are being
developed and deployed in our facilities to help reduce environmental impact.
In 2022, Essex Furukawa concentrated on numerous initiatives in the ever-changing
sustainability landscape. We learned how nimble we need to be in our effort to be an
unquestioned leader. We focused on our social responsibility, as well as how our people
and products can impact the communities around us. We also introduced efforts to gain
actionable insights regarding the role that our supply chain plays in this journey. Most
importantly, we made significant progress in reducing our carbon footprint.

We want to be
setting the standard andnot only following it.”Our second annual Sustainability Report reflects a summarization of our cumulative
efforts during 2022. It is an account that showcases our momentum as well as embracestransparency. The pages that follow explain our holistic sustainability efforts and how ourcore values are helping to create positive change as well as set a foundation for the future.
It is my belief that further successes will come to all Essex Furukawa Magnet Wire
stakeholders as we continue to apply the long-term, forward-thinking approach of
Vision 2030.

Daniel Choi
Chief Executive Officer
Superior Essex Inc.
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Table ofContents
8

8
9
10
11

Key Highlights

5

Vision 2030 Overview

Green Production

7

8Company Overview

4

6

8

Letter from the CEO

2

16

ENERGY REDUCTION
18

RENEWABLE ENERGY
19

CARBON REDUCTION
20

Disruptive Innovation
21

Agile Digitization
23

Holistic Sustainability
24
25
26
26

27

12

ZERO WASTE TO LANDFILLACCOUNTABILITY, REPORTING,& GOVERNANCE

ZERO WASTE TO LANDFILLCARBON REDUCTION TARGETS

UN SDG PARTNERSHIP

SUPPLY CHAIN TRANSPARENCYRESPONSIBLE 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 theboundaries of innovation and engineering. We lead these
efforts across the globe to foster lasting success for thecustomers we serve. Built on more than 120 years ofexpertise, our teams form mutually beneficial relationships
with members of the automotive, commercial, residential,
industrial, and energy markets to provide the products
and services they need to flourish, and in turn, inspire theircustomers to thrive. 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 aluminummagnet wire—enameled, wrapped, and extruded inboth gauge and metric sizes. We are the only magnet
wire manufacturer that is vertically integrated, allowing
seamless design, development, sourcing, production,delivery, and availability of products on three continents.
Essex Furukawa is a global leader in magnet/winding wire
product innovation and manufacturing.

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Key
Highlights
23%

11,297

CO2 Reduction

Light Bulbs Replaced with LEDs

More Volume Than 2.6M Trees Could Reducein a Single Year.1

4,576

Staff-Hours Reduced

10%by Implementing Supply Chain Tracking Technology

Renewable Energy Utilized
Enough to Power over 51,000 Homes
Simultaneously for the Year. 2

17

Communities Served

9

by Social Sustainability Initiatives

Plants Achieved ZWTL to Date

3

25,374 MT
Recycled

80%of Total Supply Chain Surveyed
for ESG Impact Upstream

1 Calculation ratio source ‘Climate Neutral Group’ / 2 Calculation ratio source ‘California ISO’ / 3 Internal audit, numbers not yet 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 water, waste,and carbon 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
Green Production will meet Vision 2030 goals
by aligning with four definitive connections:

The Vision 2030 mission for Green Production is to be therecognized leader in creating sustainable solutions within themagnet/winding wire manufacturing industry globally. We expect> Achieving and maintaining Zero Waste to Landfill status

to meet the needs of today as well as for the future in order toat all facilities globallysupport our customers and their ongoing sustainability efforts.

> Establishing and committing to utilizing Renewable Energy> Establishing and committing to Energy Reduction targets> Establishing and committing to Carbon Reduction targets

INITIATIVE

3-YEAR GOAL (2023)

7-YEAR GOAL (2027)

10-YEAR GOAL (2030)

Zero Waste to Landfill

Achieve ZWTL status at all

Monitor and maintain ZWTL

Monitor and maintain ZWTL(ZWTL)1of our plants globally

operations globally

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

20% carbon reduction3

1 Utilized a 2019 baseline / 2 Utilized a 2021 baseline / 3 Carbon goals are pending SBTi validation

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Zero Waste to Landfill

Renewable Energy

Continuing on a path to a sustainable future remains a focal

Essex Furukawa defines renewable energy as clean energy thatpoint for Essex Furukawa. Our effort to refine green production

comes from natural sources or processes that are easily replenishable.

includes achieving Zero Waste to Landfill (ZWTL) across our

Examples of renewable energy under investigation include solar,

magnet wire plants, metals processing facilities as well ashydro, and wind power. Unlike our energy reduction goal, ourchemical processing locations. For a plant to achieve ZWTL

renewable energy progress is based on total energy consumed. We

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

are continually researching possibilities to implement renewablediverted from landfill as well as from the downstream materialenergy projects at each site, globally, to reduce our Scope 2 carbon

management organization accepting the waste stream.

impact as well as enable green energy production where feasible.

Progress

Progress> Utilized 10% renewable energy in 20222> 9 plant locations have achieved ZWTL status

1

Energy Reduction

Carbon Reduction

Energy reduction initiatives include all anticipated reductions

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

from Essex Furukawa plants’ Scope 1 and Scope 2 energy

Furukawa has clearly stated its intention to reduce Greenhousesources (i.e. fuels and electricity) over the next 2023, 2027, andGas emissions across our global footprint. We now have a defined

2030 milestone years. All energy reduction calculations were

path to that reduction as an organization as well as in support

benchmarked to production to show the plants increase inof our customers’ carbon reduction targets. Essex Furukawa isenergy efficiency to production.

establishing Science Based Targets following the Greenhouse

Progress> Achieved 0.3% reduction in energy in 20222

Gas Protocol and aims to meet a 20% reduction of Scope 1 and2 emissions by 2030. In communicating these reduction targets
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> Achieved 23% reduction in Scope 1 and 2 emissions in 20223

1 Internal audit, numbers not yet third-party verified / 2 Compared to 2019 baseline / 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
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 thatwill help quantify the successes as well as identify
opportunities for improvement within the organization.

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Accountability,
Reporting, & Governance
As a corporation, Essex Furukawa places a high value onsustainability and environmental conservation. Our compliancewith multiple environmental directives and regulations is atestimony to our commitment. Through consistent communication
efforts of our data, goals, and metrics, we are able to establish
transparency both internally and externally with our stakeholders.1
We created a Sustainability Leadership Council to track ongoing
impact reductions, develop a Corporate Sustainability Report andfurther our commitments to social responsibility.

Accountability & Reporting> Carbon Disclosure Project (CDP) | Essex Furukawa reports
metrics to customers through the CDP—a global disclosuresystem for environmental transparency of companies.
> EcoVadis | Essex Furukawa reports to many customers through
EcoVadis, a sustainability assessment tool for evaluation of acompany’s integration of sustainability into business.
> Environmental Certifications | Many of our plants around theworld have received environmental certification. Details can befound in the Appendix.

1 Essex Furukawa Magnet Wire considers a stakeholder to be an individual or group that can affect or be affected by our business; or has a vested
interest in the decisions made and implemented by our leadership teams. As a privately held company 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 & Reporting—cont.
> The Copper Mark Partnership | The Copper Mark is an

GovernanceEssex Furukawa has earned the reputation of a company with theassurance framework to promote responsible production

highest integrity—producing and delivering quality products withpractices within the copper industry. Superior Essex, parent

outstanding customer service. We are proud not only of whatcompany of Essex Furukawa, became the eighth corporate

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

partner of The Copper Mark in May 2021.

protect this reputation, we continually strive to serve the best

> The Copper Mark Semis-Fabricator Pilot Certification |Essex Furukawa joined the program in 2021; in 2022
completed the on-site assessments, and in 2023 developed
and launched implementation of an improvement plan forachieving The Copper Mark certification in 2024.
> UN Sustainable Development Goals Alignment |The UN SDG program was launched in 2015 as part of its
2030 Agenda for Sustainable Development, and includes
17 Sustainable Development Goals. They recognize that
ending poverty and other deprivations must go hand-in-interests of our customers, employees and all stakeholders, while
behaving as a responsible corporate citizen. This commitment
requires, among other things, that we act with the highest ethicaland legal standards.
Our commitment to the highest standards of integrity begins
with ensuring that everyone across Essex Furukawa understands
our core values—values that define how we conduct ourselves.
These values are the foundation of our Code of Ethics.
Additional information and guidance is available in ourStandards of Business Conduct.

hand with strategies that improve health and education,
reduce inequality, and spur economic growth—all whiletackling climate change and working to preserve ouroceans and forests.
> Vision 2030 Goals | Essex Furukawa is working towards
achieving waste, energy, and carbon reduction goals while
increasing renewable energy usage for the 2023, 2027, and2030 milestone years.

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 grantmatching the time donated to further support causes that areimportant to our team.

> Customer Surveys | We have completed 53
customer surveys and questionnaires in 2022 from
39 different customers.2> Annual Report | Essex Furukawa published its first annual
sustainability report in August of 2022.

2 Either direct from customers or via NGO reports to: SupplyOn, CDP, EcoVadis,
Supplier Assurance Self-Assessment Questionnaire (SAQ), Assent

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Governance—cont.

Supplier Code of Conduct

Conflict Minerals Policy

Essex Furukawa is committed to its ESG goals and places

Essex Furukawa, including its subsidiaries, supports thethose values at the forefront of our material and supplier

humanitarian goal of ending violence in the Democratic

decisions. Updates to our Supplier Code of Conduct andRepublic of Congo (DRC) and is committed to theSourcing Strategy will focus on reducing the overall impact

responsible sourcing of conflict minerals throughout its

of waste, increasing the recycling and reuse capabilities ofsupply chain. Accordingly, Essex Furukawa has adopted

our products, holding our suppliers socially responsible, andthis conflict minerals policy (“Policy”) and expects all

reducing our overall environmental and carbon footprint.

of it suppliers to adopt a similar policy and meet the
expectations set forth herein. In support of this Policy, Essex
Furukawa will only purchase products containing conflictminerals that are DRC conflict free. Essex Furukawa has

Human Rights Policy
Essex Furukawa, including its subsidiaries, are committed to

conducted due diligence regarding all of the products it
manufactures and distributes to determine the presence ofany conflict minerals and where they are sourced.

acting with integrity in everything we do. We are dedicatedto conducting business in a manner that respects, protects,
and supports the advancement of human rights around theglobe. We strive to uphold the global standards outline in

Environmental Policy

the United Nations’ Universal Declaration of Human Rights

It is the established policy of Essex Furukawa to conduct

for responsible, integrity-based business, including

its affairs in an environmentally responsible manner. We

non-discrimination, equal opportunity, the freedom

are committed to reduce the environmental impacts of ourto associate and bargain collectively, the elimination

activities, products and services to preserve and protect

of modern slavery, human-trafficking and harmful or

the natural environment including the air, water, land andexploitative forms of child labor.

other natural resources.

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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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Zero Waste
to Landfill
Essex Furukawa recently completed a Zero Waste to Landfill

The Metals Processing Center (MPC) located in Columbia City,(ZWTL) assessment for 2022 and is planning an independent,

Indiana (U.S.) as well as the Chemical Processing Center in Fort

third-party, verification. The internal assessment found that four

Wayne were determined to both have a diversion rate of 95%. The

plants in North America, three in Europe, and two in the Asia

MPC was hindered by on-going supply chain issues involving its

Pacific region achieved a level required for ZWTL designation.

recycling efforts and has a course of action to achieve Zero Waste

Five of our plants were found to have 100% diversion rates.

to Landfill in the future.

In North America, two new plants achieved ZWTL diversion rates

Additionally, the Franklin, Tennessee (U.S.) Magnet Wire plant wascompared to last year.

found to have a diversion rate of 85% on its ZWTL assessment. It> Torreón (Mexico), Simcoe (Ontario, Canada), and Fort
Wayne, Indiana (U.S.) achieved a 99% diversion rate, with

was noted that 11% of its plant waste is water waste, and efforts to
reduce or divert that waste stream is being negotiated.

the latter two achieving ZWTL status for the first time.
> Franklin, Indiana (U.S.) maintained its 100% diversion rate.

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European plants in Serbia and Germany all achieved Zero Waste to Landfill

The plants in the Asia Pacific region have had two

status during the latest evaluation cycle.

locations retain the ZWTL status.

> Zrenjanin (Serbia) retained its 100% diversion rate for the second year.
> Bad Arolsen (Germany) improved to 100% diversion rate as well.
It discovered an issue with its downstream waste management,
implemented change, and improved by nearly two full percentage points.
> Bramsche (Germany) also retained its Zero Waste to Landfill
designation at 99%.

> Kameyama (Japan) as well as Suzhou (China) bothachieved the Zero Waste to Landfill distinction.
Kameyama remained at its 100% level while Suzhou
increased diversion through perishable waste
initiatives and improved from 99% to 100% diversion.
> Malaysian plants in Penang and Kuala Lumpur areboth continuing to work toward achieving ZWTL.
Penang was assessed at 92% diversion while
Kuala Lumpur was at 95%.

100%

99%

99%

99%

95%

95%

85%

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%

99%

100%

100%

95%

92%

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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CarbonReduction Targets

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

Essex Furukawa has created actionable plans and began
implementing processes to reduce greenhouse gas emissions at
our global magnet wire facilities. Recent initiatives include the useof electric forklifts in Japan, replacing less efficient lighting with
LEDs globally, and investing in Sustainable Aviation Fuel (SAF) bypartnering with Delta Air Lines.
We have also made significant investments in renewable energy
throughout 2022. We onboarded new solar panels at the Penang

Scope 3 Emissions
In 2021, we began investigating our Scope 3 carbon emissions
annually. In 2022 we found that 76% of our total carbon emissions
came from our suppliers.

plant in Malaysia—which is in addition to our existing panels at theWe have expanded our approach and are now gathering andSuzhou, China plant—as well as purchased 100% green electricity

analyzing ESG data from our suppliers to better understand howfrom the utility provider to power the Bad Arolsen and Bramsche

their component products and business practices contribute to ourplants in Germany. Plants in China and Japan also purchased green

environmental impact and ultimately collaborate to improve any

electricity to supply a portion of their total energy needs.

ESG related issues identified.
The reduction of greenhouse gases is important to not only the
future of Essex Furukawa but the future of the planet. We are
now considering a Scope 3 carbon reduction goal in addition
to our Scope 1 + 2 goals. We have set carbon reduction targets
using the recommended standards from the Greenhouse Gas
Protocol (GHG) and have submitted these targets for validation
to the Science Based Targets Initiative (SBTi). These targets will
help shape our path to reduce greenhouse gas emissions as anorganization. We believe communicating our carbon reduction
targets to employees and customers will catalyze additional
action up and down the value chain.

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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

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

Goal

13

Goal

5
DECENT WORK AND
ECONOMIC GROWTH• The Copper Mark• Disruptive Innovation• Human Rights Policy

Goal

11
PEACE, JUSTICEAND STRONG
INSTITUTIONS• Human Rights Policy• The Copper Mark• Sustainable

Sourcing Policy

GENDEREQUALITY• Human Rights Policy

Goal

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

Goal

16

Goal

6

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

INDUSTRY,INNOVATION AND
INFRASTRUCTURE

Goal

9

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

Delta Air Lines

Goal

12
PARTNERSHIPSFOR THE GOALS• Alignment with 12 of

the 17 UN SDGs

RESPONSIBLE
CONSUMPTION
AND PRODUCTION• The Copper Mark• ZWTL• Accountability & Reporting• Sustainable Sourcing Policy• Torreón Grey Water Reuse

Goal

17

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Supply Chain
Transparency
Vision 2030 holds Essex Furukawa accountable tounderstanding the environmental and societal impactsof the supply chain, both downstream and upstream, andto communicate this knowledge internally and externally.
By doing so, we can reduce our impact while also
supporting the impact reduction goals of our customers.
Our partnership with Waybridge, a supply chain
operating system for raw materials, gives us better
access to critical predictive information that allows us tobe agile when dealing with supply chain issues before
they affect us, and ultimately our customers downstream.
In an evolving Environmental, Social, and Governance(ESG) environment, Essex Furukawa finds it necessary
to collect, aggregate, and report certain data related
to sourcing activities. We have contracted with a third
party to engage our most critical suppliers to collect andvalidate this information related to our supply chain.

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Responsible
Sourcing
Essex Furukawa is focused on the responsible sourcing of materials

Strategic Partnerships

used in our manufacturing processes, including that of copper—the
primary material found in magnet/winding wire. Through continued
investigations into our supply chain, we are now able to makemore thoughtful decisions about who we choose to work withwhile collaborating with upstream and downstream stakeholders
in their ESG goals. While we consider the ethical, sustainable, andsocial impacts of our production materials we will maintain ourrecognized quality standards for our finished products.

Recycled Copper> We are currently sourcing 25% of our external copper supply
in North America from certified recycled sources thanks topartnerships with key suppliers.
> We internally recycle all excess copper from magnet wire
production at our North American plants at our Metals
Processing Center. Similar recycling occurs globally.
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).

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Strategic Partnerships—cont.
The Copper Mark> The greatest influence on our carbon footprint is that of ourWaybridge> 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 ongoing Semis-Fabricator Pilot at four

addressing any potential supply chain issues before theyfacilities in North America. We are currently working towardaffect us, and ultimately our customers downstream.

achieving this third-party, international certification standard,
which validates that our magnet wire products are produced
in an ethical and responsible way.
> Currently, 83% of the copper we source in North America is

Extractive Industries Transparency Initiative
Essex Furukawa supports the Extractive Industries Transparency

certified by The Copper Mark and we are actively seeking

Initiative (EITI) principles and criteria as a global standard.

additional sources globally. We are participating in the Chain

It is through increased and improved disclosures that Essexof Custody Pilot—which includes some of these certified

Furukawa supports the EITI in its mission to strengthen

stakeholders upstream, as well as stakeholders downstream.

public and corporate governance, promote understanding of
natural resource management, and provide data for greatertransparency and accountability within the extractives sector.

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Essex Furukawa Magnet Wire LLC Sustainability Report | 08-2023

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
We are currently sourcing 25% of our external copper supply
in North America from recycled sources and are forming newpartnerships globally to meet the recycling demands of ourcustomers. To help eliminate waste and reduce energy consumption
from the mining of raw materials, we recycle excess copper frommagnet wire production in our North American plants at our Metals
Processing Center—and have similar processes in place for our

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 the security and strength required
to keep products safe. It also allows
us to inject additional sustainability
efforts into that process.

locations globally.

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Essex Furukawa Magnet Wire LLC Sustainability Report | 08-2023

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 VP of Information Systems, 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 the
Corporate Commodity Manager among its members. 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 | 08-2023

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:>

Achieve Zero Waste to Landfill status at all plants in
2023 verified by a third-party audit>

Finalize Life Cycle Assessment (LCA) of
select products>

Achieve The Copper Mark certification in 2024>

Continued investment in renewable energy>

Develop water reduction goals and action plan>

Develop a Scope 3 carbon reduction goal
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Essex Furukawa Magnet Wire LLC Sustainability Report | 08-2023

Appendix
Resources
Several initiatives in support of Vision 2030, and our holistic sustainability program
are underway since May 2022 including:> Superior Essex - Essex Furukawa Partner with Waybridge on Agile
Digitization Technology> Essex Furukawa Affirms Commitment to The Copper Mark Assurance Process> Chemical Processing Plant is Crushing on-going Supply Chain Issue> Essex Furukawa Fire Brigade Brings the Heat at Torreon Challenge> Superior Essex Announces Sustainable Aviation Fuel Partnershipwith Delta> Essex Furukawa Receives TISAX Certification at German Plants> Superior Essex Employees Expand Neighborhood Outreach> Essex Furukawa Recognizes Perfect Attendance at Torreon Plant> Essex Furukawa Takes Next Step In The Copper Mark Assurance Process> Essex Furukawa ‘Lighting’ a Sustainable Future for Earth Day> Electric Forklifts Ready to Roll in Essex Furukawa Kameyama Japan Plant
Visit our website for the latest sustainability news and to track all our> Assurance Process• Keramida, Inc.
• ARCHE Advisors> Environmental Certifications• 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- Torreón (Mexico) Magnet Wire Plant- Columbia City, IN (U.S.) Metal Processing Center- Franklin, IN (U.S.) Magnet Wire Plant pending,
expected 2023
• ISO 50001-2018/2011- Bramsche (Germany) Magnet Wire Plant- Bad Arolsen (Germany) Magnet Wire Plant• ISO 45001-2018- Suzhou (China) Magnet Wire Plant- Penang (Malaysia) Magnet Wire Plant

progress to date.
Sign up for our quarterly newsletter.

Click to Navigate to External Resources
26
Essex Furukawa Magnet Wire LLC Sustainability Report | 08-2023

Appendix—cont.
Performance Data Tables1> Waste Diversion> Greenhouse Gas Emissions (GHG)2 | MT CO2e

2021

2022

Scope 1

94,96586,769

Scope 2

136,742

92,320

Scope 33

3,874,458

1,300,682

231,707179,089

Total (Scope 1 & 2)

2022
Global Waste Diversion Rate

96.5%

> Air Emissions | MT

2019

2020

2021

2022

134

160

189

204

2019

2020

2021

2022

Total Water Withdrawn

588,055

551,677

539,155

600,052

Total Water Discharged

420,110

402,936

369,808

414,125

2019

2020

2021

2022

Reportable Spills or
Releases of Hazardousor Toxic Chemicals

0

0

0

0

Number of Significant
Environmental Events

0

0

0

0

Organic Compounds> Energy Consumption | MWh/MT

2019

2020

2021

2022

Non-renewable Fuels
Purchased and Consumed

1.383

1.490

1.332

1.330

Non-renewable Electricity
Purchased

0.777

Total Non-renewable
Energy Consumed

2.160

Total Renewable Energy
Purchased or Generated

0.004

0.004

0.003

0.216

Total Energy
Consumption

2.163

2.377

2.149

2.158

0.883

2.373

0.814

2.146

0.612

1.942

> Environmental Events

1 Values include air emissions, water usage, and energy consumption at our magnet
wire manufacturing locations only
2 Following Greenhouse Gas Protocol Market-Based Approach
3 Estimated screening value> Water Usage and Utilization | m3

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Appendix—cont.
> Health and Safety Performance> Human Rights

2019

2020

2021

2022

Total Workplace Fatalities

0

0

0

0

Gross Human
Rights Violations

Total Workforce
Recordable Incident Rate4

12.1

10.8

11.0

17.9

> Financial | USD

2019

2020

2021

2022

0

0

0

0

2022
> Workforce Demographics

5

Number of Employees

2019

2020

2021

2022

1,711

2,062

2,112

2,119

Disclosure of Payments to Government7$340,286> Supplier ESG Metrics

2022
Aged <30

-

-

18%

15%

Aged 30 – 50

-

-

52%

49%

Aged >50

-

-

31%

Total Number of Suppliers Requested

40

Percent of Total Spend80%

Response Rate

29%

36%

> Supplier Performance Score8
Total Women Employed

Total Women in
Leadership Positions6

-

-

-

-

13%

25%

4 International Incident Rate
5 Age and Women Employed information not tracked in 2019 and 2020
6 Managers and above

2022

18%

21%

Environmental

42

Social74

Governance66

Overall60

7 Environmental compliance costs and fees
8 Score out of 100 possible points

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Essex Furukawa Magnet Wire LLC Standards of Business Conduct | 08-2023

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