Hydrogen Technology Conference & Expo
Houston, Texas
Technologies & Solutions For a Low-Carbon Hydrogen Future - Visit us at stand 870
ESG at Westport Fuel Systems
Environmental, Social & Governance Report
Sustainability to Us
At Westport Fuel Systems, we aspire to create a world where climate change is mitigated, and global air quality contributes to a healthy society making ESG part of the fabric of our business, and we are pleased to be able to share our 2021 ESG accomplishments with you in this report.
COVID-19 response and management
Operational decisions in 2021 continued to be influenced by the COVID-19 pandemic, and our top priorities remained focused on the health, safety and well-being of our employees, customers and the communities we serve. Throughout this time, our global workforce continued to demonstrate our core value of perseverance, as we all managed the day-to-day uncertainties while advancing our purpose of driving innovation to power a cleaner, more prosperous tomorrow for all.
Technology advancements: H2 HPDI
An exciting development to the overall energy transition narrative and an embodiment of our own commitment to that transition is the promising results from our advanced studies on hydrogen-fuelled internal combustion engines. We were able to demonstrate that our Hydrogen High Pressure Direct Injection ("H2 HPDI") fuel system meets the needs of long-haul trucking applications, offers near-zero greenhouse gas emissions and is cost-effective. Further, our H2 HPDI solution is now under evaluation with a number of global OEMs and is part of a trial research project with Scania, a world-leading provider of transport solutions.
ESG strategy and execution
Our ESG strategy was approved by the Board in early 2021 and is focused on taking concrete steps to ensure that the way we do business has positive impacts throughout our value chain. In the short time since this strategy was adopted, we are already seeing good progress. Understanding that robust reporting is a key component in corporate sustainability and given the transportation sector’s important role in carbon emission reduction, this year, we have engaged S&P Global to help us better understand our Scope 3 emissions in advance of drafting our response to the Task Force on Climate-Related Financial Disclosures ("TCFD") recommendations. We also submitted our responses to the Carbon Disclosure Project ("CDP"), which helps us assess risks, governance, strategy and performance that are applicable to the TCFD.
Risk management became a heightened focus for many organizations as the COVID-19 pandemic exposed the fragility of global supply chains. Identifying and evaluating risks, both internal and external, to Westport Fuel Systems is key. In 2021, with a focus on continuous improvement of our risk management practices in mind, we initiated the journey to foster a strengthened culture of “risk ownership” throughout the company. Through the introduction of new tools, we have aligned our approach across business units, ensuring the broader Westport Fuel Systems team is kept current with the outlined risks, and have begun to account for the potential impacts to our strategy and our stakeholders, allowing us to develop the processes necessary to mitigate the risks. We are developing ESG principles to be included in our responsible sourcing platform. This will include references to our human rights policy to ensure our suppliers and third parties will uphold the same level of integrity that we expect of our company and our people.
A great deal was accomplished in 2021 and we are proud of our achievements; however, we will never lose sight of the work that is ahead and our responsibility to create a cleaner, healthier world. Thank you very much for taking the time to read this report.
Sincerly,
Board Chair
CEO
Solutions for Decarbonizing Transportation
By enabling our customers to use clean, alternative transportation solutions using fuels like natural gas, renewable natural gas and hydrogen, we help:
Natural-gas-powered cars and trucks emit about 20% less CO2 than those that run on gasoline or diesel.
Hydrogen fuel offers the promise of zero carbon emissions and is the focus of R&D investment around the world. At Westport, we’re already testing heavy-duty truck engines on hydrogen.
Less expensive than electric vehicles and other options, LPG-powered vehicles reduce CO2 emissions by about 10% and offer significant fuel savings – the price of LPG is about 30% less than that of gasoline and 70% less than diesel.
Renewable natural gas reduces carbon at the source and on the road. It’s made from methane, which occurs naturally in landfills, dairy farms, waste water treatment plants and the like. Rather than entering the atmosphere, the methane is captured and repurposed as transportation fuel. As a result, RNG can be carbon negative, which means that it avoids more emissions than it generates.
Sustainability to Us
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ESG Strategy
Approved by the Board in early 2021, our ESG strategy is focused on taking concrete steps to ensure that the way we do business has positive impacts throughout our value chain. The ESG strategy is embedded into our business strategy, and is informed by external research, materiality assessment outcomes, and ongoing internal and external stakeholder engagement. Progress of the activities in each of the areas below is outlined in this report. Details on our ESG strategy can be found in our report here.
