Our Scope of ESG Reporting

Our first global report was published April 9, 2019 based on our performance during fiscal year 2018. Our 2019 Environmental, Social and Governance (“ESG”) Report published August 11, 2020, summarizes our performance for the fiscal year ending December 31, 2019. The report presents our material environmental, social, and governance performance with the recognition that we are always striving for ways to improve our efforts as a responsible corporate citizen and enhance transparency on our business performance. As our sustainability practices improve, so will our reporting. In our next report we will outline our corporate citizenship and ESG program, our approach to managing material topics and our targets which focus efforts on reducing emissions, improving health and safety for employees, mitigating social risks in our value chain and strengthening our governance practices.

We have followed the Global Reporting Initiative ("GRI") Standards: Core option, in preparing this report but at this time we do not necessarily meet the minimum expectation to claim a core or comprehensive accordance. The GRI is an independent institution that provides a standard framework for sustainability and ESG reporting across companies and industries. We have applied the principles of materiality and inclusiveness as recommended by the GRI to assess the relevance of priorities to Westport Fuel Systems and its stakeholders.

The boundaries of this report include all operating entities where employees work at a Company site including offices, production plants or technology centers and excludes any joint ventures. Information on our workforce includes employees regardless of their physical work location.

For a description of each location's operating focus, please refer to our 2019 Annual Information Form, available at https://wfsinc.com/investors/financial-information.

Westport Fuel Systems is using this report to summarize our ESG performance in a transparent and accountable manner. Internal reviews and processes are in place to ensure the integrity and the credibility of the data contained within, but aside from the audited financial statements, we have not sought external assurance of the ESG Report. We welcome your questions and feedback on our report or performance.  Please feel free to contact us at sustainability@wfsinc.com or online at https://wfsinc.com/sustainability.

Stakeholder Engagement and Key Collaborations

Cooperation and dialogue with stakeholders help us to understand the critical issues that matter most to them, and to us. Westport Fuel Systems has a range of diverse stakeholders and consider stakeholder engagement to be an essential component of corporate governance and good business practice. Regular and ongoing dialogue with academia, customers and OEM partners, employees, government agencies (including policy makers and regulators), industry consortiums, investors, local communities, media, non-government organizations ("NGOs") and think tanks, and suppliers through formal and informal channels is essential to our business and our ESG performance.

Stakeholder Engagement

Our stakeholder map provides a pathway to better formalize our engagement processes across the organization. Stakeholder relationships are managed by key business leads throughout the Company and we periodically receive inquiries and requests for further engagement from different stakeholder groups. Table 1 contains a list of stakeholders, the informal and formal engagement mechanisms and our understanding of their expectations specific to our business.

Table 1: Stakeholder Engagement Strategy and Approach

Stakeholder Engagement Mechanism Stakeholder Expectations
Academia
  • Regular dialogue
  • Topic-specific, conferences and events
  • Data-driven analysis
  • Transparent and defendable data
Customers and OEM Partners
  • Distributor network
  • Key account management
  • Reviews and meetings
  • Market research
  • Corporate website
  • Digital media
  • Product quality and performance
  • Operational excellence
  • Technology leadership
  • Environmental certifications
  • Sustainability leadership and reporting
Employees
  • Health and safety committees
  • Town hall meetings
  • Internal communication channels
  • Union representatives
  • Performance management processes
  • Career and growth opportunities
  • Leadership in the clean technology sector
  • Competitive pay and benefits
  • Clear communication
  • Training and development
  • Work/life balance
Government Policy Makers, Regulators
  • Global advocacy and relationship building
  • Policy and regulatory development
  • Facility visits and targeted outreach
  • Collaborative partnerships
  • Product and technology solutions to address environmental challenges
  • Job creation
  • Economic competitiveness
Industry Consortium
  • Industry working groups
  • Corporate memberships
  • Service on Board of Directors and advisory boards
  • Member direction and input
  • Strategic input on future of industry Member direction and input, strategic input on future of industry
Investors and Shareholders
  • Quarterly earnings communications
  • Analyst conference calls
  • Shareholder meetings, annual report and other regulatory filings
  • Investor relations conference
  • Financial performance
  • Return on investment
  • Shareholder value
  • ESG performance
  • Competitive positioning
  • Technology investment
  • Transparent reporting with credible data
Local Communities
  • Community outreach mechanisms
  • Emergency response plans
  • Corporate citizenship
  • No neighbourhood disruption (noise, congestion)
Media
  • Press releases
  • Media releases
  • Corporate website
  • Access to corporate spokespeople
  • Digital media
  • Clean technology innovation
  • Corporate performance
  • Shareholder value
NGOs and Think Tanks
  • Regular dialogue
  • Topic-specific conferences and events
  • Regular dialogue, Topic-specific conferences and events
  • Private-sector expertise and resources
  • Collaboration on innovative solutions
  • Transparent reporting with credible data
Suppliers
  • Top supplier meetings
  • Supplier manuals and documentation
  • Global supplier conference
  • Supplier performance audits
  • Sales growth
  • New market penetration

Corporate Memberships and Key Collaborations

Outreach and constructive dialogue are the foundation of our stakeholder engagement activities. Our employees contribute to technical working groups, committees, and advisory panels to learn, share our expertise and help build a body of knowledge about alternative fuel vehicles. We believe in the importance of contributing sound, intelligent, data driven and defensible analysis to conversations on low-carbon transportation, sustainable mobility and the transition to alternative fuels. Our approach to collaboration is driven by a transparent “show your work” philosophy and a keen interest to stay up-to-date on industry and market developments. A key element of this approach is to serve in leadership positions of industry associations, most typically on the Board of Directors, to advance the adoption of clean transportation solutions. A list of our memberships is included in table 2.

Table 2: Industry Associations and Position Occupied in Fiscal Year 2019 
Industry and Academic Consortiums Membership or Governance Position Occupied by Westport Fuel Systems
Canadian Chamber of Commerce Corporate Membership
Canadian Natural Gas Vehicle Association Chair of the Board of Directors
CALSTART Chair of the Board of Directors
European Natural Gas Vehicle Association Secretary of Board of Directors
Natural Gas Vehicles America Chair of the Board of Directors
World Liquefied Petroleum Gas (LPG) Association Corporate Membership
Institute of Corporate Directors Corporate Membership
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Determining Materiality

The intent of the materiality review is to ensure that our annual sustainability report represents the key economic, environmental and social issues that are most critical to our organization and to our stakeholders. As such, the materiality assessment process is a critical element of our global sustainability strategy.

Building on the work conducted in 2018 to identify and map our stakeholders and their collective priorities, we focused our materiality assessment efforts in 2019 on evaluating our five-year strategy, reviewing statements from our industry peers and analyzing third-party research that represented the voice of primary stakeholder groups. For more information on our key stakeholders, see section "Stakeholder Engagement and Key Collaborations". We welcome stakeholder feedback at sustainability@wfsinc.com.

A key element of this approach is to serve in leadership positions of industry associations, most typically on the Board of Directors, to advance the adoption of clean transportation solutions. A list of our memberships is included in table 2.
 
This assessment, feedback and analysis reaffirmed that the material focus areas established in 2018 remain unchanged for 2019. This review indicated a need to increase the number of disclosures within these areas in our 2019 report.
 

Material Priorities

  • Energy Intensity
  • GHG Emissions Intensity
  • Occupational Health and Safety
  • Gender Diversity
  • Global Training and Development
  • Ethics and Compliance Development
  • Supply Chain Responsibility

Our material priorities can be grouped in the following areas:

Governance, Ethics & Compliance

Fairness and Concern for Employees

Environmental Responsibility & Leadership

Supply Chain Responsibility

Aligning with the United Nations Sustainable Development Goals

The United Nations Sustainable Development Goals (“UN SDGs”) are the blueprint to achieve a better and more sustainable future for all and call for coordinated public and private sector action to achieve each goal and target by 2030. They embrace a universal framework to advance both public and private sector action in building sustainable societies. Considering our global footprint and our social and environmental impact, we have a role to play in helping support the achievement of the UN SDGs.

While our business and the content of this report may cover many UN SDGs, these specific goals align with our primary sustainability focus areas and material impacts:

Table 3: Aligning Material Impacts with United Nations Sustainable Development Goals

WFS Material Impacts and the SDGs

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News Releases

September 23

Westport Fuel Systems Clarifies Statements Regarding the Chinese Certification of Weichai Westport’s WP12HPDI Natural Gas Engine

to clarify market news regarding its Weichai Westport Inc. joint venture and WWI's 12-liter engine equipped with the HPDI 2.0™ fuel system

September 18

Weichai Westport Secures Chinese Certification for WP12 Natural Gas Engine Powered by HPDI 2.0

Westport Fuel Systems Inc. today announced that its Weichai Westport Inc. joint venture has received certification from the Ministry of Ecology and Environment of China for its 12-liter engine equipped with the HPDI 2.0 fuel system

September 15

Westport Fuel Systems Combines Businesses to Better Serve Growing Indian Market

Transaction Provides Cost Efficiencies and Greater Product Choice for Customers

August 31

Westport Fuel Systems Awarded Key Electronics Supply Contract

Estimated revenue of US$58 million over seven-year period

August 11

Westport Fuel Systems Secures €7 Million Loan from Deutsche Bank

Further strengthens liquidity of Emer S.p.A in Brescia, Italy

Industry News

Published: July 17

Egypt launches ambitious strategy to shift from gasoline to natural-gas powered cars

Egypt has launched an ambitious plan to shift the primary fuel for vehicles in its jurisdiction from petrol and diesel to compressed natural gas.

Published: March 26

Coronavirus Economic Fallout May Boost NGVs as Alternative Transportation

Natural gas vehicles (NGV) may get a boost as power markets and renewable equipment production are seen as potential casualties.

Published: March 16

Europe Increasingly Turns to CNG, LNG

The statistics not only show continuously growing sales of CNG and especially liquefied natural gas fueled vehicles, but also the growth of corresponding fueling infrastructure.

Published: March 12

Finnish heavy-duty transport expert Simeon: ”Gas is energy of the future”

Simeon’s gas-powered Volvo is used to transport gas for partners. Stenberg is pleased with the new tractor unit.

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