GB Auto - Climate Change 2023
C0. Introduction
C0.1
(C0.1) Give a general description and introduction to your organization.
GB Corp is a leading automotive company in the Middle East and a non-bank financial services provider in Egypt with markets in Iraq and Egypt, with over 28,000 employees (2022). GB Corp's revenues (FY 2022) were 29,789 Million EGP. With a rich, and diversified business portfolio, GB Corp strives to embody excellence in every aspect of its business. With a diverse human capital which compiled years of experience in their field of expertise, GB Corp occupies a remarkable leadership in the markets it operates in.
The past year has been a major milestone in GB Corp's journey. A new brand, rapid digitalization and sustainability across the business lines mark out the year. We have chosen to rebrand us as GB Corp as a representation of who we are today. The unified entity encompasses GB Auto, GB Capital, GB Logistics, GB Ventures, GB Academy and the GB Foundation for Development as subsidiaries of GB Corp.
GB Auto, a market leader in Middle East and Africa, known for its service offerings. This includes manufacturing, assembly, distribution, and after-sales of different types of vehicles ranging from 2&3 wheelers, passenger cars, commercial vehicles, construction equipment and tires. GB Auto's portfolio of partners currently includes the leading global brands of 1) passenger cars: Hyundai, Mazda, GWM, Fabrika, Chery, Changan, 2) tires: Goodyear, Lassa, Yokohama, Westlake, Techking, Doublestar and Verde.
GB Capital is a non-bank financial services provider in Egypt. GB Logistics is an Integrated Service Provider (ISP) specialized in offering high-quality logistics services. GB Ventures is a specialized technology Venture Capital focused primarily on seed investments within the mobility ecosystem. GB Academy is outfitted to provide professional technical training that are tailored to customer needs. Finally, GB Foundation is a non-profit organization focused on bridging the gap between the vocational education and industry needs by applying international standards and accreditations.
2022 marks our third disclosure year to CDP's Climate Change questionnaire and reporting of our operational GHG emissions aligned with global standards such as the GHG Protocol. We published our seventh sustainability report and second GRI report, in accordance to the Global Reporting Initiative (GRI) Standards, Task Force on Climate- Related Financial Disclosures (TCFD), and the United Nations Sustainable Development Goals (UN SDGs). Our third Carbon Footprint Report disclose our 2022 GHG emissions as well as additional details related to the data disclosed in this questionnaire.
In 2022, we successfully phased out diesel entirely across all our manufacturing facilities and replaced it with natural gas, as part of our ongoing efforts to reduce our carbon footprint. Additionally, in terms of governance we have developed GB Corp ESG Strategy 2022-2025 covering 2030 Vision. We have recently launched four hybrid vehicle models. In addition, a partnership will facilitate the localization of Electric, Diesel and CNG buses to serve both the Public and Private transportation sectors in the Egyptian market.
Prima manufacturing plant started the operation of Solar PV in November 2022, currently supplying 1.5% of the plant's electricity consumption. Badr and Sadat plants are in the process of installing solar PV panels, scheduled for operation in 2024. Sadat manufacturing plant is in the process of installing a wastewater treatment system that treats wastewater discharged to be reused in the manufacturing process and for landscape irrigation.
We have also made significant steps on digitalization with a wide range of newly introduced digital tools and channels. One of our key achievements of GB Corp of the past year has been the Supplier Gate, a new efficient framework and digital tool for managing our supplier relations. The recently launched Forsa app providing people with greater financial flexibility and is now available across more than 4,000 stores.
During 2022, GB Corp contributed to COP27, hosted by Egypt, through a clean 100%-electric30-bus fleet to reiterated its commitment to present solutions of a clean and sustainable future.
To enhance our ESG performance, we are presently working on creating an Environmental and Social Management System for all of GB Corp's operations. The goal is to develop a comprehensive Climate Change Risk Management System and incorporate it into our existing Group Risk Management Framework.
The boundaries included in this reporting period include facilities and sites across Egypt and Iraq. The facilities in Egypt include 5 factories, in addition to 58 service centers/showrooms, and 6 office buildings. The facilities in Iraq include 1 admin building, 35 showrooms and service centers, 5 warehouses and 4 outlets.
For further information, the links can be accessed as indicated below:
Website: https://gb-corporation.com/
Sustainability report: https://s3.amazonaws.com/resources.inktankir.com/gb/GB-Corp-SR22.pdf
CDP | Page | 1 | of 50 |
C0.2
(C0.2) State the start and end date of the year for which you are reporting data and indicate whether you will be providing emissions data for past reporting years.
Reporting year
Start date
January 1 2022
End date
December 31 2022
Indicate if you are providing emissions data for past reporting years
No
Select the number of past reporting years you will be providing Scope 1 emissions data for
Select the number of past reporting years you will be providing Scope 2 emissions data for
Select the number of past reporting years you will be providing Scope 3 emissions data for
C0.3
(C0.3) Select the countries/areas in which you operate.
Egypt
Iraq
C0.4
(C0.4) Select the currency used for all financial information disclosed throughout your response.
EGP
C0.5
(C0.5) Select the option that describes the reporting boundary for which climate-related impacts on your business are being reported. Note that this option should align with your chosen approach for consolidating your GHG inventory.
Operational control
C-TO0.7/C-TS0.7
(C-TO0.7/C-TS0.7) For which transport modes will you be providing data?
Light Duty Vehicles (LDV)
Heavy Duty Vehicles (HDV)
Marine
Aviation
C0.8
(C0.8) Does your organization have an ISIN code or another unique identifier (e.g., Ticker, CUSIP, etc.)?
Indicate whether you are able to provide a unique identifier for your organization | Provide your unique identifier |
Yes, a Ticker symbol | AUTO |
C1. Governance
C1.1
CDP | Page | 2 | of 50 |
(C1.1) Is there board-level oversight of climate-related issues within your organization?
Yes
C1.1a
(C1.1a) Identify the position(s) (do not include any names) of the individual(s) on the board with responsibility for climate-related issues.
Position of | Responsibilities for climate-related issues |
individual or | |
committee | |
Chief | The CEO of GB Corp holds the responsibility of approving budgets for climate-related projects, as well as approving targets and future plans. This role is crucial in ensuring that the company |
Executive | remains committed to its sustainability goals and continues to prioritize climate-related initiatives in its operations. The CEO's oversight and approval of these budgets and plans demonstrate the |
Officer (CEO) | company's dedication to sustainability and its accountability to its stakeholders. |
C1.1b
(C1.1b) Provide further details on the board's oversight of climate-related issues.
Frequency with which | Governance | Scope of | Please explain |
climate-related issues | mechanisms into which | board- | |
are a scheduled agenda | climate-related issues | level | |
item | are integrated | oversight | |
Scheduled - some | Reviewing and guiding | <> | The board of GB Corp is responsible for setting the company's overall strategy and action plan, which includes addressing climate-related |
meetings | annual budgets | Applicable | matters and ensuring responsible environmental management practices. As part of this, the board oversees the company's risk management |
Reviewing and guiding | > | efforts to identify and mitigate risks associated with climate change, energy usage and regulatory changes related to emissions. | |
strategy | |||
Overseeing the setting of | In order to support these efforts, the board also approves budgets and business plans that prioritize sustainability and environmental | ||
corporate targets | responsibility. This may include allocating resources for initiatives such as energy efficiency upgrades and water conservation measures. | ||
Monitoring progress | |||
towards corporate targets | To ensure that the company is making progress towards its environmental objectives, the board sets clear objectives and tracks progress over | ||
Reviewing and guiding the | time. This includes regular assessments and reporting on the business' greenhouse gas emissions. | ||
risk management process | |||
GB Corp's Investor Relations Assistant Vice President regularly reports to the CEO on any climate-related matters or issues that may have | |||
arisen. In addition, the CEO and board hold an annual meeting to approve the company's TCFD and ESG reports and ensure that the company | |||
is meeting its commitments to sustainability and responsible environmental management. | |||
C1.1d
(C1.1d) Does your organization have at least one board member with competence on climate-related issues?
Board | Criteria used to assess competence of board member(s) on climate-related issues | Primary reason for | Explain why your organization does not have at | |
member(s) have | no board-level | least one board member with competence on | ||
competence on | competence on | climate-related issues and any plans to address | ||
climate-related | climate-related | board-level competence in the future | ||
issues | issues | |||
Row | Yes | To evaluate competence, we rely on past experience. For instance: | ||
1 | ||||
1. Thorough understanding of sustainability, energy efficiency, net zero initiatives, clean energy and | ||||
renewable electricity options, and water scarcity. | ||||
2. The competencies required for strategic execution include facilitating the transition towards a low-carbon | ||||
economy, mitigating risk, engaging stakeholders, and implementing climate-related vision and strategies. | ||||
3. Familiarity with international policies and industry best practices, including the GHG Protocol and UNFCCC. | ||||
4. Demonstrated experience and participation in large-scale international events related to climate change. | ||||
The Chairman of GB Corp has demonstrated a strong dedication to sustainability initiatives and actions in | ||||
recent years. Since 2016, he has been publishing annual sustainability reports to communicate the company's | ||||
progress and sustainability performance. Additionally, the Group's Chairman has been committed to the | ||||
UNGC principles since 2013. | ||||
Furthermore, the CEO of GB Corp has been actively involved in the creation of the Group's first | ||||
comprehensive materiality assessment, Sustainability Strategy 2022-2025 with 2030 Vision, as well as the | ||||
Group's ESG Policy, which has been developed, approved, and disseminated to all subsidiaries and company | ||||
departments during 2021, and applied throughout the business starting 2022. | ||||
https://www.unglobalcompact.org/participation/report/cop/create-and-submit/active/46251 | ||||
C1.2
CDP | Page | 3 | of 50 |
(C1.2) Provide the highest management-level position(s) or committee(s) with responsibility for climate-related issues.
Position or committee
Risk committee
Climate-related responsibilities of this position
Assessing climate-related risks and opportunities
Managing climate-related risks and opportunities
Coverage of responsibilities
Reporting line
Risk - CRO reporting line
Frequency of reporting to the board on climate-related issues via this reporting line
Quarterly
Please explain
Both assessing and managing climate-related risks and opportunities
Ensures objective reporting on the company's performance, and focuses on financial operations and risk management.
Position or committee
Other committee, please specify (Group Manufacturing Officer)
Climate-related responsibilities of this position
Managing climate-related risks and opportunities
Coverage of responsibilities
Reporting line
Operations - COO reporting line
Frequency of reporting to the board on climate-related issues via this reporting line
More frequently than quarterly
Please explain
Both assessing and managing climate-related risks and opportunities
The Group's Manufacturing Officer identifies risks and regulations regularly with the responsible departments.
Position or committee
Other committee, please specify (Audit Committee)
Climate-related responsibilities of this position
Monitoring progress against climate-related corporate targets
Coverage of responsibilities
Reporting line
CEO reporting line
Frequency of reporting to the board on climate-related issues via this reporting line
Quarterly
Please explain
Assessing the achievement of our ESG targets as defined in our 2022-2025 Strategy with 2030 Vision.
Position or committee
Other, please specify (Investor Relations Assistant Vice President)
Climate-related responsibilities of this position
Managing public policy engagement that may impact the climate
Assessing climate-related risks and opportunities
Managing climate-related risks and opportunities
Coverage of responsibilities
Reporting line
CEO reporting line
Frequency of reporting to the board on climate-related issues via this reporting line
Annually
Please explain
Currently, the Investor Relations Assistant Vice President is the highest-ranking company officer responsible for climate-related matters. As such, the Investor Relations Assistant Vice President reports directly to the CEO during annual meetings and for any pressing issues that relate to water projects.
During these meetings, critical topics such as the progress made towards our 2022 climate goal, significant changes, and potential issues related to climate projects are discussed in detail. The Investor Relations Assistant Vice President serves as a key liaison between the company and its stakeholders, ensuring that the CEO is kept informed of any developments or concerns related to water usage and conservation.
Moreover, during the annual meetings, the Investor Relations Assistant Vice President also discusses the TCFD and ESG reports with the CEO to get his approval and ensure that our approach aligns with our goals and values.
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C1.3
(C1.3) Do you provide incentives for the management of climate-related issues, including the attainment of targets?
Provide incentives for the | Comment | |
management of climate-related | ||
issues | ||
Row | Yes | All employees are strongly encouraged to take part in the sustainability advancement of the business, through workshops, discussions and competitions on behavioral |
1 | patterns. Sustainability focal points are located at all offices/facilities to drive and monitor the implemented sustainability initiatives. | |
C1.3a
(C1.3a) Provide further details on the incentives provided for the management of climate-related issues (do not include the names of individuals).
Entitled to incentive
All employees
Type of incentive
Non-monetary reward
Incentive(s)
Internal team/employee of the month/quarter/year recognition
Performance indicator(s)
Progress towards a climate-related target
Achievement of a climate-related target
Reduction in absolute emissions
Reduction in emissions intensity
Incentive plan(s) this incentive is linked to
This position does not have an incentive plan
Further details of incentive(s)
Cooperating and assisting with the compilation of the data and information needed to develop our annual carbon footprint report and GRI sustainability reports. Sustainability 'Champions' i.e. Focal points are located at all offices/facilities to drive and monitor the implemented sustainability initiatives, and collect the needed data for reporting, these focal points are recognized and hold a second title pertaining to corporate sustainability - related activities and participation.
Explain how this incentive contributes to the implementation of your organization's climate commitments and/or climate transition plan
The efforts are contributing to our measuring and tracking of the data related to climate change, in order to be able to take proper climate actions. By this, we can have a clear overview of the organization, its progress and evaluate our performance against our reduction targets.
Entitled to incentive
All employees
Type of incentive
Non-monetary reward
Incentive(s)
Internal company award
Internal team/employee of the month/quarter/year recognition
Performance indicator(s)
Other (please specify) (Behavioral Change)
Incentive plan(s) this incentive is linked to
Not part of an existing incentive plan
Further details of incentive(s)
Every year we conduct a sustainability-themed campaign for all employees, related to a certain topic, such as savings in energy and/or water consumption. The winner is awarded and recognized internally in the company, and gets a prize for winning the competition.
Explain how this incentive contributes to the implementation of your organization's climate commitments and/or climate transition plan
By this initiative, we encourage all employees to changed behavior with regards to climate change. The changed behavior also affects other employees positively , with the aim to not only change for the sake of the competition but make a change on daily patterns where sustainability is a natural part of the mind-set and the consumption behavior.
C2. Risks and opportunities
C2.1
(C2.1) Does your organization have a process for identifying, assessing, and responding to climate-related risks and opportunities?
Yes
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C2.1a
(C2.1a) How does your organization define short-, medium- and long-term time horizons?
From (years) | To (years) | Comment | |
Short-term | 0 | 3 | Refers to the period within which quick-win actions are implemented, spanning the reporting year and the following two years. |
Medium-term | 3 | 15 | The medium-term time horizon is addressed via the Strategic Planning process. |
Long-term | 15 | 30 | The stated time period aligns with the time frame specified in the Science-based target criteria. |
C2.1b
(C2.1b) How does your organization define substantive financial or strategic impact on your business?
GB Corp has recently (during 2022) launched its revamped brand, aspiring to be more than just a provider of products and services. We want to enable solutions that bring value to people and promote sustainable practices. In our organization, we define "substantive impacts" as those that have the potential to affect our business activities, customer and employee experience in a positive and/or negative way. This could be due to climate-related risks and opportunities such as conditions or events, which could affect our operational costs, earnings and financial position.
To identify and assess climate-related risks, we use the two criteria:
- the severity of the impact on reputation, operating costs, and revenue, and
- the frequency with which the risk could arise
We regularly evaluate our operations to identify critical and emerging risks that could have a significant effect on GB Corp. Senior leaders discuss and address these risks and report them quarterly to the Risk Committee of the Board and the Board. We also prepare specific plans to mitigate these risks as well as emerging risks, monitor them regularly, and adjust accordingly as needed.
- Operational risks could arise from the absence of a critical supplier where no alternative suppliers are available.
- Financial risks could result from financial losses exceeding a certain threshold, which requires mitigation.
- Additionally, any risk or impact that has the potential to disrupt production and/or prevent access to markets or negatively affect more than 1% of net income is considered significant and requires attention.
C2.2
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(C2.2) Describe your process(es) for identifying, assessing and responding to climate-related risks and opportunities. Value chain stage(s) covered
Direct operations
Upstream
Downstream
Risk management process
Integrated into multi-disciplinarycompany-wide risk management process
Frequency of assessment
More than once a year
Time horizon(s) covered
Short-term
Medium-term
Long-term
Description of process
Risk/opportunities-impact identification Process:
Risks and opportunities by climate-related aspects are integrated into management practices. The process of impact/risk-impact includes several sessions, such as scoping sessions, where climate related risks and opportunities are identified, assessed and responded to throughout the value chain. This is done by the Board of Directors, together with key stakeholders and GB Corp's internal experts and the company's sustainability consultants. Also, the financial, operational, strategic and legal risks of the business are assessed and monitored on a regular basis. The engaged report their practices on early determination of risks, measures to be taken regarding the detected risks, and management of the risks.
Once the risk/opportunity is identified, it's assessed using a typical impact assessment methodology taking into consideration impact probability of occurrence, intensity, spatial and temporal scale and sensitivity of receptors. Thereafter, the response is developed. This covers the planning phase of the response, monitoring and reporting process.
Management and Monitoring Plan:
The decarbonization action plan shall include the actions and measures , the roles and responsibilities besides performance indicators and objectively verifiable indicators. The objectively verifiable indicators are expected to be monitored following the frequency indicated in the plan. This shall be conducted by the different lines of businesses and supervised by the Sustainability Department and the CEO.
As a step in this, following 2020 and 2021, we have assessed our carbon footprint (FY2022). In 2020, GB Corp started to conduct it first GHG calculations and aims to do this on an annual basis and publishing information about its performance and progress towards the set targets in its annual Carbon Footprint report.
Continuing on to 2021, GB Corp accounts for the GHG emissions generated by its internal operations at its owned facilities. All the data collected and analyzed within this report follow the World Resources Institute Greenhouse Gas Protocol principles of relevance, completeness, consistency, transparency, and accuracy.
In 2022, with our recently launched revamped brand, we have been able to further expand our boundaries of operations to now include more facilities and enhanced data quality.
The operational boundaries included GHG emissions of our main activities, embracing direct emissions from controlled equipment and assets, emissions from purchased electricity, and selected indirect emissions resulting from our operations within Egypt and Iraq. The analysis and calculations were based on the Greenhouse Gas Protocol, the Intergovernmental Panel on Climate Change (IPCC) Guidelines for Greenhouse Gas Inventories, and the ISO 14064-1:2018 standards.
A decarbonization action plan is currently being developed covering operational, management and infrastructure aspects while also prioritizing the mitigation projects and measures according to their ease of implementation , financial indicators and positive environmental and social impacts.
The implementation of the plan is expected to begin in the upcoming years where we are currently assessing projects and actions to be taken, where some of them have already started its implantation, and will be monitored on a quarterly basis, and the progress against emission reduction targets will be published in the sustainability report, the annual carbon footprint as well as disclosed to internal and external stakeholders. This also includes training and capacity building plan targeting all departments in the company on climate change impacts, risks and opportunities, GHG calculations, decarbonization action plan among other ESG material topics. This is complemented by a continuous assessment of ESG performance and development of the annual sustainability report according to GRI standards, that will also be conducted on an annual basis.
C2.2a
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(C2.2a) Which risk types are considered in your organization's climate-related risk assessments?
Relevance Please explain | ||
& | ||
inclusion | ||
Current | Relevant, | Continuous monitoring is implemented to ensure compliance with the latest sustainability regulations, particularly those related to climate. The company takes measures to comply with |
regulation | always | relevant laws and regulations, as well as to identify any new emerging regulations. Efforts are being made to obtain ISO 50001 certification for all facilities, and the certification body |
included | confirmed the company's compliance with ISO 14001-2015 for environmental management. | |
Emerging | Relevant, | Building upon the previous, we are planning to undertake a thorough review and evaluation of legal and regulatory compliance, with particular attention to new and emerging requirements |
regulation | always | related to managing climate-related concerns on a national and international level, including disclosing on sustainability performance. Such risks of emerging regulation could affect our |
included | business in several ways, where action could be critical. This review is in the process and is scheduled to be completed by 2023. | |
Technology | Relevant, | We commit to utilizing the power of technology and innovation to leverage better decisions, improve accessibility and efficiency, and generate novel solutions for a more sustainable future. |
always | This covers aspects of advanced technology of vehicles such as low-carbon and electric vehicles, and also digitization among our services. | |
included | ||
We aim to have 100% of eligible services digitized by 2025, and products with enhanced sustainability characteristics would be present in each product line by 2025. | ||
We're committed to using the power of technology and innovation to make better decisions, improve efficiency, and develop creative solutions to create a more sustainable future. |
- Our aim is to digitize all eligible services by 2025 and incorporate sustainability-enhancing features into every product line to help build a better world for everyone.
- We're determined to leverage technology and innovation to make smarter decisions, improve access and efficiency, and come up with new and exciting solutions to advance sustainability.
- Our goal is to embrace innovation and technology to drive better decision-making, streamline our operations, and develop fresh solutions that promote a more sustainable future.
- We're passionate about utilizing technology and innovation to enable better decision-making, enhance accessibility and efficiency, and create innovative solutions that help to build a brighter, more sustainable future for us all.
Legal | Relevant, | Currently, there are no direct national laws related to climate change that affects our business, but there are national efforts made to promote sustainability within businesses such as |
always | energy and water reductions and renewable energy to be scaled up. There could be other laws affecting our business, such as import regulations etc. which we addressed by focusing | |
included | more on local suppliers. | |
However, we are aware that laws related to climate change that requires actions and emissions reductions become stricter over time. We take our environmental responsibilities seriously | ||
and comply with all local regulations at our manufacturing and business facilities. This includes submitting detailed environmental and health and safety records to ensure we're doing our | ||
part to protect the planet and our employees. | ||
Market | Relevant, | At GB Corp, we continually strive to expand our market share while maintaining a competitive edge and delivering the highest level of customer satisfaction. We closely monitor global |
always | market trends and analyze their potential impacts on our business, taking into account factors such as the state of the global economy, import availability, market interest, and changing | |
included | consumer behavior. | |
We recognize that the future of the automotive industry lies in low-carbon and electric vehicles, as well as the digitization of all services. Therefore, we are working towards the emerging | ||
market trends, ensuring that we remain at the forefront of sustainable transportation solutions. | ||
As with regards to our partners, we are currently in the process of collaborating on gathering market insights, and staying up-to-date with regulatory developments to ensure a smooth | ||
transition towards sustainable mobility solutions, including low-carbon vehicles, for all customer segments. | ||
Reputation | Relevant, | As a prominent player in the automotive industry across our operating countries, GB Corp is under intense public scrutiny. We have a responsibility to comply with market requirements, not |
always | least disclosing data on CDP, where an absence of this could result in significant damage to our reputation, affecting consumer preferences, stakeholder concerns, and public perception. | |
included | Climate-related reputational risks are just one example of the broader range of climate change-related risks that we face. | |
Since inception, GB Corp has established a highly regarded reputation with over six decades in the industry, thanks to our commitment to offering top-notch automotive services. We firmly | ||
believe that sustainability is key to achieving long-term business success. Incorporating a sustainability-focused corporate design not only boosts brand value but also meets consumer | ||
demands, attracts top talent, improves operational efficiency, and increases employee productivity. | ||
To ensure that we maintain the highest quality standards and effectively identify, assess, and mitigate financial and ESG (Environmental, Social, and Governance) risks, we're committed | ||
to creating internal systems and procedures. As part of this effort, we plan to integrate ESG factors into our Audit Committee Charter, Risk and Control Framework, and Internal Audit | ||
Manual by 2023. | ||
Although a large share of our business currently revolves around internal combustion engine vehicles, we recognize the growing trend towards hybrid, electric, and other sustainable | ||
options. That's why we invest in R&D to stay abreast of market needs. As a reputation risk could lead to changes in consumer preferences and potentially impact our market share and | ||
growth potential, we're fully committed to managing these risks effectively. | ||
Acute | Relevant, | Our manufacturing operations rely heavily on the upstream value chain for the materials and parts needed to produce automobiles. Extreme weather events such as heavy rain, floods, or |
physical | sometimes | sudden climate changes could halt our operations, affecting our business. Moreover, global economic changes and raw material shortages pose significant risks to pricing, delivery times, |
included | and supply chain disruptions. | |
Our primary external suppliers are located in China, India, and Korea, and their operations may also be impacted by climate change-related events, such as recent flooding and heatwaves. | ||
To mitigate these risks, we're actively pursuing a strategy of diversifying our supplier base and developing more local supplier partnerships. We're working towards depending more on | ||
local suppliers, and currently, 90% of our suppliers are local. | ||
Chronic | Relevant, | Building on the previous, chronic physical risks can have both direct and indirect impacts on our production facilities and those of our suppliers. Long-term risks such as rising sea levels in |
physical | sometimes | coastal zones, which GB Corp rely on for imported vehicles/parts, and extreme weather events, as well as shifts in climate patterns such as changes in average temperatures or total |
included | annual precipitation, are all relevant factors that must be considered in our risk assessments and sustainability strategy, where we seek to enhance wastewater and material circularity with | |
set actions according to the 2022-2030 plan. As part of this, we're exploring wastewater projects, such as installing a wastewater treatment system in one of our plants to treat discharged | ||
water for reuse in the manufacturing process and landscape irrigation. These efforts demonstrate our commitment to mitigating climate-related risks and promoting sustainability throughout | ||
our operations. | ||
C2.3
(C2.3) Have you identified any inherent climate-related risks with the potential to have a substantive financial or strategic impact on your business?
Yes
C2.3a
(C2.3a) Provide details of risks identified with the potential to have a substantive financial or strategic impact on your business. Identifier
Risk 1
Where in the value chain does the risk driver occur?
Direct operations
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Risk type & Primary climate-related risk driver
Current regulation
Enhanced emissions-reporting obligations
Primary potential financial impact
Increased indirect (operating) costs
Climate risk type mapped to traditional financial services industry risk classification
Company-specific description
In both our domestic and international jurisdictions of operation, we are subject to various mandates and regulations, such as GHG and CAFE standards, fuel economy regulations, and emissions levels for CO2 and other greenhouse gases. Compliance with these regulations is critical to how we conduct our business.
Current laws, regulations, and governmental policies regarding increased fuel economy requirements and reduced greenhouse gas emissions have a significant impact on our operations. Meeting these requirements may require additional costs and investments, as well as significant management resources, to maintain compliance with current regulatory restrictions related to climate change.
Time horizon
Unknown
Likelihood
More likely than not
Magnitude of impact
Medium
Are you able to provide a potential financial impact figure?
No, we do not have this figure
Potential financial impact figure (currency)
Potential financial impact figure - minimum (currency)
Potential financial impact figure - maximum (currency)
Explanation of financial impact figure
N/A
Cost of response to risk
Description of response and explanation of cost calculation
Comment
Identifier
Risk 2
Where in the value chain does the risk driver occur?
Downstream
Risk type & Primary climate-related risk driver
Technology
Substitution of existing products and services with lower emissions options
Primary potential financial impact
Decreased revenues due to reduced demand for products and services
Climate risk type mapped to traditional financial services industry risk classification
Company-specific description
The global automotive industry is currently undergoing a major transformation due to the evolving regulatory landscape around fuel efficiency, greenhouse gas emissions, and other tailpipe emissions. This shift is driving the industry towards more sustainable and eco-friendly practices. Advances in technology, such as electrification and autonomous driving, are also shaping the future of the industry.
To remain competitive and ensure future success, it's crucial for us to stay ahead of these changes by offering innovative and attractive products that meet these evolving regulatory requirements and technological advancements. We must focus on developing sustainable and eco-friendly transportation solutions that meet the needs of our customers. By embracing these changes and investing in R&D to stay at the forefront of the industry, we can position ourselves for long-term success and growth.
Time horizon
Long-term
Likelihood
More likely than not
Magnitude of impact
Medium-high
Are you able to provide a potential financial impact figure?
No, we do not have this figure
Potential financial impact figure (currency)
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Potential financial impact figure - minimum (currency)
Potential financial impact figure - maximum (currency)
Explanation of financial impact figure
N/A
Cost of response to risk
Description of response and explanation of cost calculation Comment
Identifier
Risk 3
Where in the value chain does the risk driver occur?
Upstream
Risk type & Primary climate-related risk driver
Market
Uncertainty in market signals
Primary potential financial impact
Increased indirect (operating) costs
Climate risk type mapped to traditional financial services industry risk classification
Company-specific description
Our manufacturing operations rely heavily on the upstream value chain for the materials and parts needed to produce automobiles. Several market concerns, such as global economic changes and raw material shortages pose significant risks to pricing, delivery times, and supply chain disruptions. We have our primary external suppliers located in China, India, and Korea, and their operations may as well be impacted by climate change-related events. Thereto, local regulations related to imports may affect our business.
To mitigate these risks, we're actively pursuing a strategy of diversifying our supplier base and developing more local supplier partnerships. We're working towards depending more on local suppliers, and currently, 90% of our suppliers are local.
Time horizon
Medium-term
Likelihood
More likely than not
Magnitude of impact
Medium-high
Are you able to provide a potential financial impact figure?
No, we do not have this figure
Potential financial impact figure (currency)
Potential financial impact figure - minimum (currency)
Potential financial impact figure - maximum (currency)
Explanation of financial impact figure
N/A
Cost of response to risk
Description of response and explanation of cost calculation
Comment
C2.4
(C2.4) Have you identified any climate-related opportunities with the potential to have a substantive financial or strategic impact on your business?
Yes
C2.4a
(C2.4a) Provide details of opportunities identified with the potential to have a substantive financial or strategic impact on your business. Identifier
Opp1
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GB Auto SAE published this content on 01 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 November 2023 11:07:27 UTC.