- April 23, 2024
In the global bid for sustainability and climate action, the European Union has positioned itself at the forefront with an ambitious target for climate neutrality by 2050. True to our mission: “Our Powertrains drive a sustainable world”, Punch Powertrain is committed to contribute significantly. As a frontrunner on human resource and environmental practices, we welcome the opportunity to report and align our efforts in a transparent manner through the Corporate Sustainability Reporting Directive (CSRD) starting in 2026.
At Punch Powertrain, we know that our obligations extend beyond shareholders to encompass all stakeholders. These consist of our employees, partners, suppliers and clients, communities and the environment. We also are convinced sustainability requires a thorough cross-team cooperation. From optimizing our manufacturing processes to reducing carbon emissions, every department plays a vital role in advancing our sustainability goals. Through the new European reporting framework, we are empowered to track our progress and drive continuous improvement across the organization, prioritizing sustainability alongside profitability.
Analyzing what matters – Double Materiality Assessment
A crucial and first step towards meaningful sustainability efforts is a comprehensive analysis of the material topics – understanding topics that matter to our stakeholders. To this end, Punch Powertrain has started an extensive stakeholder outreach in the end of 2023 in the form of Double Materiality assessment, which is currently nearing its conclusion. Following in depth interviews with a wide range of stakeholders, over 60 experts in the ESG matters across our global locations are involved in focus group discussions to ensure a correct assessment of the reported impacts, risks and opportunities. Their assessment will be presented to the executive team to define the key material matters for further action and reporting.
Executive commitment
In order to drive our sustainability efforts in a structural manner a Sustainability Steering Committee with executive team members has been established in February. The committee is tasked with executive decisions, resolving bottlenecks and ensuring resource availability across departments. The group meets monthly and serves as a crucial platform for assessing Punch Powertrain’s progress on sustainability and the CSRD reporting.
We are pleased to report significant progress across our departments, well ahead of the mandatory European deadline of reporting in 2026.
In-house cross-department drive
At Punch Powertrain, we firmly believe in the value of internal expertise to retain essential know-how within our organization. Keeping the entire CSRD reporting process in-house ensures direct engagement with stakeholders, open communication, and cultivation of trust. Moreover, retaining expertise internally enables us to control the quality of our efforts and reports. This approach further aligns with our culture of continuous learning and innovation and not only strengthens our relationships with stakeholders, but also reinforces our commitment to excellence and sustainability across all operations.
On track for CSRD
We are pleased to report significant progress across our departments, well ahead of the mandatory European deadline of reporting in 2026.
CSRD’s ESG framework provides us with a transparent tool for reporting on challenges that are already addressed and make sure we continue to include new topics that matter to our stakeholders. Whether it’s reducing our CO2 footprint, ensuring employee health and safety, or upholding fair business practices, we are committed to excellence. By focusing on ESG metrics, we can demonstrate our holistic approach to sustainability and contribute to positive social and environmental outcomes. Through transparent reporting and meaningful action, we aim to lead by example, driving positive change within our industry and beyond. Together, we can build a more sustainable future for generations to come.
About CSRD
While a financial report provides shareholders with a clear view on our company’s financial health, CSRD enables us to transparently communicate our environmental, social, and governance (ESG) performance to all stakeholders. This directive, established as part of the Green Deal initiative, mandates how companies must report on their sustainability endeavors in a transparent manner. The automotive sector plays a significant role in achieving this goal, as it holds immense potential to positively impact global carbon emissions. As a leading player in the automotive industry, Punch Powertrain views this framework as a helpful guide in our pursuit of innovation, transparency, accountability, and environmental stewardship.
