Message to our Stakeholders
"Our culture revolves around nurturing collaboration, valuing diverse perspectives, and working toward a common goal with purpose and passion."
DAN
SCELI
CEO & Director
We are delighted to present our 2023 ESG report. As with past years, we invite you to join us in celebrating our accomplishments, initiatives, and advancements in the realm of sustainable development. At the same time, we remain open about the challenges we've overcome and those we foresee in the future. We are committed to a positive and sustainable future and as a company we hold ourselves accountable for our part in creating a greener planet.
Our commitment
At Westport, we have worked hard to stay accountable to our ESG goals. Although we still have progress to make, Westport is invested in aligning its vision and promises with action. We are embracing the challenge to achieve sustainable operations, with unwavering dedication to our core values of integrity, respect, and perseverance. As the world’s risks, challenges, and uncertainties continue to unfold, we remain focused on decarbonizing transportation, cleaning our air, and creating a more sustainable future.
Our ESG strategy is methodically crafted to implement initiatives that foster positive impacts throughout our entire value chain. Such a strategic approach, intertwined with our overarching business strategy, draws insights from external research, materiality assessments, and ongoing dialogues with both internal and external stakeholders. This ESG report provides a detailed overview of the progress made within each of the identified focus areas.
In 2023, we focused on the following ESG topics:
- Reducing our carbon footprint
- Occupational health and safety
- Diversity, equity, and inclusion
- Responsible sourcing
- Human rights
- ESG governance
The future of the hydrogen industry
The global hydrogen industry is becoming more dynamic through increased investment, industrial applications, and policy support. With approximately 1,400 projects announced, that represents a total investment of US$570 billion and 45 million tons per annum of clean hydrogen supply announced through 2030. Additionally, advancements in technology and manufacturing scale are expected to lower the cost of producing renewable hydrogen to $2.5-4.0/kg by 2030 as its availability increases.
Source: Hydrogen Insights 2023, Hydrogen Council and McKinsey & Company, December 2023
Global government policies are accelerating the shift to zero emissions. In the EU, ambitious emission reduction targets for heavy-duty transport underscore the region's commitment to decarbonization, encouraging the adoption of cleaner fuels and technologies, including hydrogen-powered vehicles. Central to this shift is the ongoing development of new hydrogen fueling stations along key EU transport corridors. Also, the Biden administration recently unveiled a detailed plan to help incentivize construction of hydrogen refueling infrastructure for large trucks across the United States.
Our progress:
Carbon footprint
At Westport, we are committed to incremental, continuous improvements that collectively result in significant reductions in CO2 emissions. This dedication drives our pursuit of sustainability which will lead to a greener future in the transportation industry.
Since 2019, we've been diligently tracking our Scope 1 and 2 carbon emissions, and in 2022, we took significant strides by initiating the collection and assessment of data on our Scope 3 emissions. While we acknowledge the journey ahead in refining our system for capturing precise Scope 3 data, we are resolutely committed to this endeavor. We firmly believe that reliable data serves as the cornerstone for informed decision-making and proactive steps toward achieving our goal of net-zero emissions.
Our voluntary disclosure to the CDP organization underlines our commitment to transparency and adherence to established metrics and guidelines, crucial for the development and implementation of an effective environmental improvement plan. Westport also partnered with Ecovadis, which we believe shows our commitment to ethical business practices and environmental stewardship.
2023 highlights
Westport’s ESG strategy is focused on taking concrete steps to ensure that the way the organization does business has positive impacts throughout the value chain. Westport’s progress includes:
- Maturing of our corporate governance by ongoing implementation, improvement, and monitoring of policies.
- Advancing our commitment to providing a safe, diverse, and inclusive work culture, by performing corporate analysis on inclusivity and becoming UNI PdR 125:2022 certified at Westport Italy, our largest facility.
- We're actively advancing our ESG management by initiating the formation of a localized ESG Steering Committee in Italy. This committee aims to bolster the significance of sustainable development priorities. Its primary goal is to elevate the focus on global initiatives and enhance their management at the local level.
- Achieving 44% female representation at the Board level, well above the 30% target.
- Honored with two prestigious national awards: the Friendly Workplace recognition at our plant in Poland and the Award for Excellence at our facilities in Italy. These accolades serve as evidence of the strength of our Human Rights Policy, demonstrating our commitment to effectively implementing its provisions in practice.
- Helping our customers to be leaders in affordable, sustainable, and efficient transportation solutions – e.g., further advancing in Westport’s HPDI™ technology with both biomethane and hydrogen, delivering industry-leading CO2 reductions for long-haul, heavy- duty transport
- Established long-term partnership with Ecovadis to build a Responsible Purchasing Strategy.