Company: THRM
Filing Date: 2025-03-27
Form Type: DEF 14A
Source: 0001140361-25-010582
Chunk: 25

Company: Gentherm Inc
Filing Date: 2025-03-27
Form: DEF 14A
Chunk 25
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 our carbon footprint. In 2022, we worked with outside consultants and experts to develop our long-term carbon reduction goals and aspirations, which will guide us for years to come and influence our products, our operations, our purchasing decisions and related matters. In 2023, we defined and committed to our long-term carbon reduction targets for Scope 1 and 2 emissions for 2035. Our Scope 1 and 2 targets are aligned with SBTi guidance, and our plan to achieve them includes leveraging energy efficiency, implementing on-site generation when feasible, renewable energy purchases, infrastructure changes and fuel changes. In 2023, we added a sustainability metric directed to renewable energy share to our Senior Level Bonus Plan for NEOs, and that metric was also applied in 2024, further supporting the progress toward our emissions goal. In 2024, our team expanded our purchases of renewable energy, leveraged external audit results to identify energy efficiency saving opportunities at our locations, and launched a number of products with increased levels of recycled and sustainable materials. While we are focused on driving our sustainability forward and meeting our commitments, we do so while adhering to some key principles. First, we establish goals and plans for which there is a clear path and vision to achievement. We make it a focus to commit to goals that are attainable and reasonable. Second, we will not set goals or take actions which may materially and adversely affect our financial condition, strategy or future performance goals. Our team is taking actions to drive our sustainability program forward, including initiatives designed to reduce our carbon footprint. To ensure that our sustainability program aligns with our financial condition and goals, each action taken is reviewed as a business case, including evaluation of solar installation opportunities, conducting energy efficiency audits, and investing in high efficiency equipment. Currently, the financial expense of our sustainability efforts are immaterial to our overall financial performance, and in some cases our efforts are identifying opportunities that drive costs savings. In 2024, in connection with its oversight of our sustainability program, the Nominating and Governance Committee conducted a financial review of our program with a focus on costs directly associated with sustainability as well as cost-savings.

44 | 2025 PROXY STATEMENT

HUMAN CAPITAL MANAGEMENT AND CORPORATE CULTURE Board Oversight The Board and Board Committees have a significant role in overseeing our human capital management and corporate culture, including:

| – | The Board provides oversight of our executive management talent acquisition and development, performance reviews, and succession planning. |

| – | The Compensation