ESG Statement of the Management Board

Ladies and Gentlemen, 

As a technology company, we have a responsibility towards our employees, the environment and future generations. We are aware of the challenge that climate change poses for humanity. Our precise manufacturing processes enable our customers to use energy and raw materials more efficiently. At the same time, we continuously review our internal processes to minimize our carbon footprint and make a positive contribution within our entire value chain. We are determined to find sustainable solutions and work together towards a better future.

Tomorrows Technology Today

A pioneering spirit is in LPKF's genes. We are constantly working with creativity and perseverance to develop the cutting-edge technologies of tomorrow. In addition to megatrends such as miniaturization, connectivity, CO₂ reduction and demographic change, other ESG factors also play an important role, both for our business development and for our customers. In particular, high-precision, clean and energy-efficient production methods enable progress towards sustainability and digitalization. LPKF plays an active role here as a technology and market leader. We continue to invest more than ten percent of our annual revenue in research and development and thus in innovation - the results benefit the company and our stakeholders in the long term.

Working in partnership with our stakeholders is of central importance to us. Through dialog with our employees, customers, investors and suppliers, we learn which topics are of particular interest to them. These insights flow directly into our processes. In order to take the opinions of our stakeholders even more into account, we conducted a stakeholder survey for the first time as part of our 2023 materiality analysis. We are pleased that the results of this survey confirm the topics that we have already focused on in recent years.

Environment

In our day-to-day business, we see that we make a tangible contribution to protecting the environment. We enable our customers to work faster and more efficiently and to develop innovative, sustainable products. Our Solar division offers solutions for the more cost-effective production of even more efficient solar modules and thus makes a direct contribution to climate protection.

We already have a low carbon footprint in the manufacture of our products, which we want to reduce further. Our ambitious goal is to make our production climate-neutral by 2030. We are already well on the way: by using green electricity and offset gas, we have been able to reduce a significant proportion of our CO₂ emissions. We expect further positive effects from the gradual conversion of our vehicle fleet to electric vehicles and the commissioning of a new solar installation at our headquarters in Garbsen. We also see opportunities to reduce emissions in the area of transportation.To offset some of the remaining CO₂ emissions, we are supporting a climate protection project (Gold Standard) to build a solar power plant in India.

Social

In addition, our technologies make a significant contribution in the medical field thanks to their high precision and cleanliness. Our ARRALYZE technology enables faster and more efficient single-cell analyses, particularly in cancer research. ARRALYZE will help to ensure that many more people will be able to afford highly effective individualized cancer therapies in the medium term than is currently possible.

Social factors also play an important role in our entire value chain. We ensure that sustainability standards are adhered to in our supply chain and are further established along this chain.

But none of this would be possible without our employees: they are characterized by a high degree of teamwork, creativity, curiosity and innovation. With our "LPKF moves you" initiative, we not only promote the health of our workforce with sporting activities, but also the social commitment of individual employees.

Governance

Good corporate management and effective corporate governance form an essential basis for our success. In the reporting year, the Supervisory Board was reorganized and is now competently represented in all specialist areas. LPKF has had highly effective control systems in place for many years and we will maintain this high standard in the future.

Only together can we achieve our ambitious goals. This is why sustainability targets are part of the Management Board's remuneration. For the past two years, senior executives have also been measured against ESG targets.

We have been an official member of the UN Global Compact since November 2021. We support the principles of the UNGC in the areas of human and labor rights, environmental aspects and anti-corruption. We want to join forces to actively promote the goals of the United Nations and continuously improve ourselves in the process.

By acting responsibly, we want to continue to meet the challenges facing our society and contribute to a sustainable future with pioneering cutting-edge technologies.

With kind regards,