Wabtec: Westinghouse Air Brake Technologies : 2024 Sustainability Metrics Report

2024 Sustainability Metrics Report 2023 Sustainability Our ESG Data SASB Index ESG Policy & Highlights Strategy Accomplishments Tables Program Reference About This Report Wabtec 2024 2 Sustainability Metrics Report A Data Update The 2024 Wabtec Sustainability Metrics Report presents a summary of our environmental, social, and governance (ESG) information, including performance toward our targets in addition to specific qualitative and quantitative data consistent with the framework outlined by the Sustainability Accounting Standards Board (SASB). The metrics in the report span the fiscal year ending December 31, 2023, unless otherwise noted. When we use the terms "Wabtec," "Company," "we," "us," or "our" in this report, we mean Wabtec Corporation and its subsidiaries, on a consolidated basis, unless otherwise stated or implied through the context. Our Sustainability Reports We encourage readers to explore more detailed descriptions of our ESG-related policies and programs, as well as corporate governance, in Wabtec's full sustainability report published in November 2023. A table of relevant ESG policies and programs, each linked to the 2023 Sustainability Report or elsewhere on WabtecCorp.com, is provided in the appendix on page 17 for reference. In early 2024, Wabtec published a Climate Report, which details our strategy for addressing climate-related impacts relevant to our business. This report is aligned with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), now covered by the International Financial Reporting Standards (IFRS) Foundation. Wabtec's Climate Report also includes new commitments on the capability of our products to help our clients meet their climate goals. Progress on these new commitments is highlighted on page 6 of this report. As a member of the United Nations Global Compact (UNGC), we publish an annual Communication on Progress, detailing how our strategies and operations are aligned with the Ten Principles of the UNGC, covering human rights, labor, environment, and anti-corruption. We also recently submitted our annual response to CDP's climate change questionnaire. Contact Us Wabtec welcomes feedback and enquiries from our stakeholders at sustainability@wabtec.com. Table of Contents 2023 Highlights 3 Sustainability Strategy 4 Our Accomplishments 5 ESG Data Tables 9 SASB Index 14 Appendix - ESG Policy 17 & Program Reference Additional Information 2023 Sustainability Report Climate Report 2024 Proxy Statement 2023 Annual Report Wabtec Corporation Website 2023 Sustainability Our ESG Data SASB Index ESG Policy & Wabtec 2024 3 Highlights Strategy Accomplishments Tables Program Reference Sustainability Metrics Report 2023 Highlights SALES BY PRODUCT LINE FREIGHT TRANSIT 72% 28% 8% 12% 28% 18% 34% Transit Services Equipment Components Digital Intelligence BROAD SCALE IN GLOBAL MARKETS 9% 14% $9.68B 50+ 29k 60% 17% 2023 Revenues countries with employees 15.7% year-over-year increase Wabtec operations Americas Europe Asia Pacific RoW 2023 Sustainability Our ESG Data SASB Index ESG Policy & Wabtec 2024 4 Highlights Strategy Accomplishments Tables Program Reference Sustainability Metrics Report Sustainability Strategy Unlock our customers' potential by delivering innovative and lasting transportation solutions. Our Sustainability Vision Wabtec is committed to creating sustainable value through innovative rail technologies and responsible business practices, benefiting all Wabtec stakeholders and the planet. Our Sustainability Principles United Nations Sustainable Development Goals Innovating with Purpose We are committed to developing responsible and sustainable products that minimize our impact on the planet. Driving Responsible Operations We are committed to providing safe work environments and products that enable productive and efficient use of resources. Empowering People and Communities We are committed to driving an inclusive culture grounded in integrity, committed to the development of, and investment in, the communities where our teams live and work. Rail Decarbonization At Wabtec, we recognize the importance of climate action and realize that we have the most influence on climate change through our innovative products. A modal shift to rail will enable a significant reduction in global greenhouse gas (GHG) emissions and Wabtec's products and technologies can further accelerate decarbonization. Earlier this year, we announced new interim commitments for Scope 3 emissions focused on our products. These commitments demonstrate how we plan to continue to create sustainable value for our stakeholders and shareholders. Additional information can be found in the Wabtec Climate Report. Decarbonizing rail, and specifically non-electrified tracks, requires a systematic approach and alignment between a large number of stakeholders. The development of technology is one important piece of Infrastructure this rail decarbonization puzzle. Success also requires the supporting infrastructure and supply chains, the adaptation of operating models, the approval of regulatory agencies, and the implementation of Wabtec Rail underlying policies that promote these various factors. Commercial Decarbonization adoption requires that all these elements come together. Customers Strategy Technology We continue to advocate for policies that contribute to the decarbonization of rail and develop partnerships to address policy issues to complement our role as a technology company. Regulation 2023 Sustainability Our ESG Data SASB Index ESG Policy & Wabtec 2024 5 Highlights Strategy Accomplishments Tables Program Reference Sustainability Metrics Report Our Accomplishments Innovating with Purpose We are leading the development of alternative propulsion technologies like FLXdrive TM , the first heavy-haul 100% battery electric locomotive. Wabtec is supporting the decarbonization efforts of mining operators in the Pilbara region of Western Australia. In October 2023, we unveiled the first commercial FLXdrive with our launch customer Roy Hill. The locomotive is projected to enter service in 2025. Wabtec's Trip Optimizer , smart cruise control system, surpassed 1 billion miles since launched, significantly reducing the rail industry's fuel consumption and emissions - 752 million gallons of fuel were saved, which equates to 7.7 million tons of greenhouse gas (GHG) emissions reductions. Read the details here. In addition to GHG emissions, our products also reduce other air pollutants, such as particulate matter (PM) and nitrogen oxides (NOx), with the aim of improving local air quality and supporting a more sustainable future for communities. At Wabtec, our vision is to revolutionize the way the world moves for future generations. Our innovative products, along with the development of alternative fuel technologies, including biodiesel, renewable diesel, and hydrogen, can give our customers the ability to reduce their Scope 1 and 2 emissions. Scope 3 GHG emissions from use of Wabtec's products represent one area where we can have a critical impact on rail decarbonization. Refer to the next page for the details of our new Scope 3 targets. At the forefront of sustainable innovation in the transit rail industry, our critical products - including brakes, doors, air conditioning, couplers, and passenger information systems - help generate significant savings for our customers, while pushing transit systems toward a more sustainable future. Our Green Air HVAC system uses R290 refrigerant, presenting significantly lower emissions potential compared to R-134a, which is most often used. R290 has a global warming potential (GWP) of less than one, compared to R-134a, which has a GWP of 1,300. Our Green Friction product portfolio was developed in partnership with Île-de-France Mobilités and Régie Autonome des Transports Parisiens, which operates the Paris metro and the suburban lines, to improve air quality. Green Friction reduces the amount of fine particulate emissions generated from braking by up to 90% , an impact independently verified by researchers at the University of Naples. In December 2023, Wabtec held its fourth Alternative Energy Conference, with over 100 participants. The gathering brought together Wabtec employees, key vendors, and customers, including all of the Class I railroads. To assist Wabtec's customers as they begin ramping up to use biofuels to meet their 2030 GHG reduction goals in alignment with the Science Based Targets initiatives (SBTi), the conference was focused on the biofuel test update and discussed test results covering fuel efficiency, emissions, performance, and altitude testing. Additional topics included updates on our progress with battery electric locomotives and hydrogen technologies advancements, as well as insights on biomass- based fuels and renewable diesel production, which was presented by industry experts. These partnerships are important to Wabtec, to ensure that we develop technology with our customers' needs in mind. As such, we regularly work with them to design, test, and demonstrate our innovative future products and technologies. 2023 Sustainability Our ESG Data SASB Index ESG Policy & Wabtec 2024 6 Highlights Strategy Accomplishments Tables Program Reference Sustainability Metrics Report Progress Towards Our New Climate Commitments In 2023, Wabtec disclosed its Scope 3 emissions and committed to establish interim Scope 3 targets in those categories most relevant to Wabtec. Our Climate Report announced new product capability targets 1 that are aligned with our strategy to reduce the GHG impact of rail transport. 1 Freight locomotives with 100% biofuel (B20/R80) capability 2 will be available with the following milestones: New and modernized high-HP 3 freight 2026 locomotives capable of 100% biofuel (B20/R80) in North America PROGRESS 2027 Low-HP modernizations to provide capability for 100% biofuel (B20/R80) PROGRESS 2030 New and modernized freight