Sustainability at SGL Carbon

SGL Carbon pursues target-oriented research and development both in its two business units and in Central Innovation. In addition to increasing economic profitability, these activities equally aim to continuously improve the sustainability of our products and processes.

The manufacture of carbon fibers and specialty graphite production processes require extremely high temperatures and is energy intensive. The majority of SGL Carbon's energy consumption is due to generating heat and the thermal cleaning of emissions. As a company using a large amount of energy we have special responsibilities with regard to climate change and the environment, as the consumption of energy is also linked to emissions of greenhouse gases, in particular CO2.

The top-level target for energy management is to use all types of energy efficiently and to thus ensure constant improvements. In so doing, SGL Carbon is focused on energy-efficient equipment and processes. We have included this in our EHSA energy management policy and our Code of Conduct. In addition,
we offered training activities at the ISO 50001 certified sites and communicated energy management within the Company. We want to ensure that our employees are also aware of our energy reduction activities. They should have the necessary knowledge that will help them contribute to actively reducing energy consumption. Since December 2015 all of SGL Carbon’s European production sites have an ISO 50001-certified energy management system. Certification was issued by the management system certification companies, DQS and DEKRA. The non-European sites, Moses Lake, Gardena and Arkadelphia have also been certified to ISO 50001.

As part of SGL Carbon’s business activities, waste products from carbon and residual materials are produced. Both carbon and also the residual materials produced in most of the production processes are highly recyclable. We primarily use water to cool production equipment.

At all of its locations worldwide, SGL Carbon undertakes to comply with all of the applicable statutory requirements and to uphold effective management processes and continuous performance improvements for its management of resources. We pursue the objective of using resources efficiently, and avoiding impacting the environment as far as possible. We thus aim to constantly reduce water consumption and the production of waste. Our principle for waste avoidance is: avoidance is better than recycling and recycling is better than disposal. Waste that cannot be prevented can often be reused in other products or at other locations. For example, recycled carbon fibers can be used as fleece textiles for automotive production. SGL Carbon uses water carefully, and uses secondary circuits and cooling equipment wherever this makes economic sense. Water that does not come directly into contact with production is not contaminated, and can be discharged into rivers after use in some cases.

SGL Carbon relies on having a highly performing workforce for its entrepreneurial success. We regard protecting our employees' health and safety as being an ethical obligation with a high entrepreneurial value. We have set out binding requirements for all our employees in our Code of Business Conduct and Ethics
and our EHSA Policy which applies worldwide. We also attach great value to the corresponding standards at our business partners and consider health and safety at work aspects when selecting suppliers. The Code of Conduct for suppliers and subcontractors stipulates that these must ensure their employees' health and safety in their work-place, and set up a management system for constant improvement.

The aim is also to improve on the existing safety activities. In 2019 a target Frequency Rate for accidents with lost time injuries was 3.10 accidents per million worked hours. This includes accidents by SGL’s employees and external contracted employees) with at least one day lost after the day of the accident. This target was not reached with an actual result of 3.29, however the Frequency Rate was lower than in 2018 (3.45 accidents/million worked hours). The target for Severity Rate was reached with a value of 140 (target: 155) and was also lower than in the previous year (148 days/million worked hours). Targets of 3.10 accidents/million worked hours and 150 days/million worked hours have been set for 2020.