Sustainability Report | Wabtec Corporation

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        WabtecCorp.com
        WabtecCorp.com
      
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        2020 Sustainability Report Moving and Improving the World 
      
          
      
          
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        WabtecCorp.com/Sustainability
        WabtecCorp.com/Sustainability
      
      
          
        This sustainability report contains forward-looking statements, which concern future circumstances and results and ot   
      
          
      
      
          
        Letter from the CEO,3 ,We Are Wabtec,5 ,Building a More Sustainable Future ,7,Corporate Governance Governance Framewo   
      
          
      
          
        Driving Responsible Operations Energy and Emissions Employee Health and Safety COVID-19,23 ,Empowering People & Commu   
      
          
      
          
         moving and improving the world Table of Contents
      
          
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        Visit  to read stories about how Wabtec is driving a more sustainable future 
      
          
      
          
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        Letter from Rafael Santana, President & CEO Sustainability and Accountability are Building a Bigger, Stronger Wabtec
      
          
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        Together we re building a leading, Fortune 500 company by developing innovative technologies and driving responsible    
      
          
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        The year 2019 was a transformational one for Wabtec, culminating in a historic merger that brought together strong bu   
      
          
      
          
        Our position as a global transportation leader gives us a unique perspective on the megatrends that are impacting our   
      
          
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        to optimize our operations by using less fuel and generating less emissions; and continue to meet the sustainable tra   
      
          
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        Rafael Santana President & CEO
      
          
      
           
          
      
          
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        See pages 44-45 for complete list of ESG goals and metrics 
      
          
      
          
        of net sales will be driven by Wabtec s eco-efficient portfolio
      
          
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        By 2030
      
          
      
          
        30% 
      
          
      
          
        30% 
      
          
      
          
        Greenhouse gas emissions intensity and energy intensity will be reduced by 
      
          
      
    
          
  
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        Wabtec 2020 Sustainability Report
      
          
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        Wabtec is a leading global provider of equipment, systems, digital solutions, and value-added services for the freigh   
      
          
      
          
         27K
      
          
      
          
         50 
      
          
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         8 2B
      
          
      
          
        2019 revenues
      
          
      
          
        employees
      
          
      
          
        Countries with Wabtec Operations 
      
          
      
          
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        We are Wabtec
      
          
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      Corporate Headquarters Pittsburgh, Pa
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        Wabtec 2020 Sustainability Report
      
          
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      Transit,34
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      Freight,66
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        With its exceptional fuel economy and low emissions, public transportation is one of the most environmentally-friendl   
      
          
      From the food on our tables to the products we purchase, freight rail is part of an integrated, efficient, and cost-e   
      
          
        of portfolio*
      
          
      
          
        of portfolio*
      
          
      
          
        * based on 2019 revenue
      
          
      
          
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        Building a More Sustainable Future 
      
          
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        At Wabtec, we believe performance drives progress, and are committed to developing sustainable transportation solutio   
      
          
      
          
        Our stakeholders — from investors to employees — are increasingly interested in how we are addressing environmental,    
      
          
      
          
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        Our Mission Performance that drives progress  We create transportation solutions that move and improve the world  
      
          
      
          
        Sustainability Vision Wabtec is committed to sustainable value creation  Our strategy is to contribute to a better, m   
      
          
      
          
        Sustainability Principles Innovating with Purpose We are committed to developing responsible and sustainable products   
      
          
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        Sustainability Strategy
      
          
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        Corporate Governance
      
          
      
          
        Governance Framework Risk Management and Compliance Responsible Business Practices 
      
          
      
    
          
  
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        10
      
          
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        Corporate Governance Governance Framework
      
          
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        Wabtec 2020 Sustainability Report
      
          
      
          
        As we continue our sustainability journey and our support of the United Nations Sustainable Development Goals, we are   
      
          
      
          
        Sustainability at Wabtec means operating in an ethical and socially responsible manner, maintaining a culture of safe   
      
          
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      Empowering people and communities ,Responsible operations ,Innovating with purpose
      
          
        Shared value commitments owned by the business
      
          
      
          
        Driven by responsible business practices, external policies, and frameworks to guide our actions
      
          
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      Board of Directors Wabtec s Environment, Health, and Safety (EHS) Subcommittee   a standing subcommittee of the Nomin   
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        Speak Up
        Speak Up
      
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        Corporate Governance Risk Management & Compliance 
      
          
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        Wabtec 2020 Sustainability Report
      
          
      
          
        Risk is an inherent part of conducting global business  Wabtec regularly identifies and monitors business risks throu   
      
          
      
          
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        Code of Conduct
        Supplier Code of Conduct
        Human Rights Policy
        People-First Policy
        Conflict Minerals Policy
        Conflict Minerals Policy
        Public Policy
        Code of Conduct
      
      
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        Corporate Governance Responsible Business Practices 
      
          
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        Wabtec 2020 Sustainability Report
      
          
      
          
        Guiding our actions are the following responsible business practices: Code of Conduct Our  is the cornerstone of how    
      
          
      
          
        Wabtec believes we are not only responsible for doing things right, but it s our obligation to do the right things  W   
      
          
      
          
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        Technical Innovation Unlocking the Path to Autonomous Operations Decarbonizing Global Transport Advancing a Circular    
      
          
      
          
        Innovating with Purpose
      
          
      
    
          
  
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        Wabtec 2020 Sustainability Report
      
          
      to market,1s
      
          
        Innovation and sustainability define Wabtec 
      
          
      
          
        Advanced adhesion controls system to improve traction efficiency for heavy haul locomotives Train energy management f   
      
          
      Innovating with Purpose Technical Innovation is at our Core ,Today, rail represents the most cost-effective, energy-e   
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        Wabtec 2020 Sustainability Report
      
          
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        FLXdrive While batteries have gone mainstream in the automotive industry, the rail industry has lagged behind   until   
      
          
      
          
        Innovating with Purpose Changing the Course on Emissions
      
          
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      100% battery-electric locomotive worldwide,1st
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       10-30% fuel & emissions savings
      
          
        up to 6,000 kWh capacity
      
          
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        Wabtec 2020 Sustainability Report
      
          
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        5% 
      
          
      
          
        reduction in fuel consumption
      
          
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        5% 
      
          
      
          
        reduction in CO2
      
          
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      reduction in fuel consumption ,5% 
      
          
        Locomotive Efficiency Tier 4 Designed to meet the U S  Environmental Protection Agency s (EPA) most stringent Tier 4    
      
          
      
          
        FDL Advantage There are approximately 10,000 FDL locomotives currently operating in heavy-haul applications around th   
      
          
      
          
        Auto Engine Start Stop Wabtec has equipped more than 14,000 locomotives with auto-engine start stop capabilities, whi   
      
          
      
          
        Electric Drive Systems Wabtec produces industry-leading optimized electric drive systems for mining trucks  With more   
      
          
      Tier 4,vs  Tier 
      
          
        Performance in Action
      
          
      
          
        FDL Advantage
      
          
      
          
        Electric Drive Systems 
      
          
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        Wabtec 2020 Sustainability Report
      
          
      
          
        Innovating with Purpose Unlocking the Path to Autonomous Operations 
      
          
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        Transportation customers are increasingly seeking ways to optimize their operations, use less fuel, and generate fewe   
      
          
      
          
        Wabtec developed a comprehensive set of applications that deliver demonstrable impact across the transportation lands   
      
          
      
          
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        The Trip OptimizerTM system reduces  railroad CO2 emissions   by 500,000 tons annually    
      
          
      
          
            that s like removing 100,000 cars from the road  
      
          
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      The movement planner at the Atlanta Dispatch center creates network efficiencies 
      
      
          
        Compared to truck transport 
      
          
      
      
          
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        Wabtec 2020 Sustainability Report
      
          
      
          
        Wabtec s Movement Planner  system optimizes the mainline network by providing real-time rail traffic planning and opt   
      
          
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        75% 
      
          
      
          
        RailConnect  reduces greenhouse gases by up to 
      
          
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        Wabtec 2020 Sustainability Report
      
          
      
          
        The need for innovative low-carbon technologies and transformative solutions that reduce energy consumption and waste   
      
          
      
          
        Decarbonizing the transportation sector will mean addressing a disparate collection of transportation methods,?and dr   
      
          
      Electric vehicles,CO2 reduction,Energy Management,Dust Reduction
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        Innovating with Purpose Decarbonizing Global Transport 
      
          
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        Wabtec 2020 Sustainability Report
      
          
      
          
        Our Metroflexx brake system is the industry s most advanced mass transit brake control  Designed to meet customer and   
      
          
      
          
        of Wabtec s net sales today is derived from the company s eco-friendly product portfolio  The company is on track to    
      
          
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        20% 
      
          
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        Wabtec 2020 Sustainability Report
      
          
      
          
        Innovating with Purpose Advancing a Circular Economy: Reduce, Reuse, Rebuild
      
          
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        Wherever possible, we strive to provide customers with quality equipment that delivers the best value for their busin   
      
          
      
          
        Starting with our engineering and manufacturing expertise, Wabtec uses additive manufacturing technology (commonly ca   
      
          
      to introduce 3D printed parts in rolling stock,1s
      
          
        Additive Technology
      
          
      
          
        Remanufacturing
      
          
      
          
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        Wabtec 2020 Sustainability Report
      
          
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        to global remanufacturing facilities annually, which is then reused or remanufactured (79 percent), and recycled (20    
      
          
      
          
        By the Numbers REDUCE In an engine overhaul, 99 percent of the weight of a locomotive engine is reused, requalified,    
      
          
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      increase in reuse and remanufacturing on new technologies by 2030,10
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        Energy and Emissions Employee Health and Safety COVID-19 
      
          
      
          
        Driving Responsible Operations
      
          
      
    
          
  
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        Beyond creating better, more sustainable products and services for our customers, Wabtec is committed to improving th   
      
          
      
          
        Creating a More Sustainable and Safer World
      
          
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        Wabtec partnered with ERM to review its greenhouse gas inventory methodology and prepare the emissions estimate for 2   
      
          
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        Sustainable & Safe Operations Environmentally Responsible Operations
      
          
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        At Wabtec, we are working to strengthen our position as a sustainable company while improving energy and resource eff   
      
          
      
          
        Wabtec 2020 Sustainability Report
      
          
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        While efforts to reduce our environmental footprint have been underway for many years, we committed to completing a c   
      
          
      
          
        Reductions by 2030
      
          
      
          
        30% CO2e  million net sales  greenhouse gas emissions intensity reduction by 2030 
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        30% Megajoules   net sales  energy intensity reduction by 2030 
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        30% Water  water consumption reduction by 2030 
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        46 9 metric tons   million net sales 
      
          
      
          
        0 66  MJ   net sales
      
          
      
          
        39 6 M gallons
      
          
      
          
        2019
      
          
      
          
        2019
      
          
      
          
        2019
      
          
      
          
        32 8 metric tons   million net sales 
      
          
      
          
        0 46  MJ   net sales
      
          
      
          
        27 7 M gallons
      
          
      
          
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        Scope 1 and 2 GHG emissions only  Reductions normalized per annual net sales  
      
          
      
          
        Reductions normalized per annual net sales  
      
          
      
          
        Includes consumption for only sites in water scarce regions 
      
          
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        Powering the Electrical Grid and Reducing Energy Use While conserving energy is a critical part of our sustainability   
      
          
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        Photo: Wabtec broke ground on its new German Sustainable Building Council (DGNB) Gold-certified property in Bochum, G   
      
          
      
      
          
        panels producing 225,000kWh of energy per year  These renewable energy sources will account for approximately 25 perc   
      
          
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      The conservation of water is critical to our operations and the communities in which we operate  Parts and product wa   
      Protecting Our Water Supplies
      
          
        Hosur, India: A Road to Self-Sufficiency Access to a plentiful water supply is a challenge in many regions of the wor   
      
          
      
          
        Rainwater harvesting is one of the most effective methods of water management and water conservation  It is also one    
      
          
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        Today, water scarcity affects four out of every 10 people, and current trends indicate the problem will escalate, acc   
      
          
      The conservation of water is critical to our operations and the communities in which we operate  Parts and product wa   
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        People First 
        People First 
      
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        2019 marked the 12th consecutive year of injury rate reductions across Wabtec s vast operations 
      
          
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        Sustainable & Safe Operations Creating Safe Environments 
      
          
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        Employee health and safety is the foundation on which Wabtec was built  As we drive toward a more sustainable future,   
      
          
      
          
        When it comes to employee safety, every initiative is viewed through the lens of our  policy, which outlines our comm   
      
          
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        Additional safety measures will be implemented to reduce the recordable workplace injury and illness rate by 30% by 2   
      
          
      
          
        Fatalities
      
          
      
          
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        1 08 Recordable injuries per 200,000 hours worked 
      
          
      
          
        Recordable Injury and Illness Rate
      
          
      sites with zero recordable injuries,70
      Lost-Time Case Rate ,0 41 Work-related injuries resulting in lost time per 200,000 hours worked
      
          
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      Inaugura  o da linha Mix Moving Line - GE Transportation - Contagem - MG - Brasil  Foto: MPerez
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      Focus on Lean,As part of Wabtec s continuous improvement culture, the company launched a Lean transformation model in   
      
          
        Photo: Wabtec s locomotive assembly plant in Contagem, Brazil is operating with a mixed-model moving assembly line —    
      
          
      
          
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        In 2020, the COVID-19 pandemic disrupted not just our industry but the world  The pandemic has reinforced the importa   
      
          
      
          
        Protecting Our People, Serving our Customers, Supporting our Communities Wabtec used additive technology to produce t   
      
          
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        COVID-19 
      
          
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        Photo: The Swabhiman Training Centre is a flagship community development program supported by Wabtec, which empowers    
      
          
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        Talent Development Diversity and Inclusion Investing in Communities
      
          
      
          
        Empowering People & Communities
      
          
      
    
          
  
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        Business success in a rapidly changing world depends on access to the best possible talent, skills, and ideas  To dri   
      
          
      
          
        Empowering People & Communities 
      
          
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        At Wabtec, our roughly 27,000 employees are the bedrock of our success  Collectively, they are taking on some of the    
      
          
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        Wabtec s continued success as a global leader in the transportation industry centers on ensuring a strong global work   
      
          
      
          
        Empowering People and Communities Investment in Talent: Attract, Retain, Develop 
      
          
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        As many experienced professionals approach retirement age, we are also faced with the challenges   and opportunities    
      
          
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        In the area of employee personal and professional development, we strive to create a learning culture and offer educa   
      
          
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        Investing in Community Skill Building     We depend on talented people to run and repair our equipment in some of the   
      
          
      
          
           More than 1,500 courses available to Wabtec employees     More than 200,000 total hours of training completed by W   
      
          
      
          
        Training 2019 by the Numbers
      
          
      
          
        As an Egyptian, I am proud to help my country expand its infrastructure and am grateful for the skills I have been ta   
      
          
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        We remain committed to a strong pay-for-performance philosophy that aligns individual performance, behaviors, and bus   
      
          
      
          
        Since the creation of the new Wabtec, we have updated our performance management process to make it more meaningful a   
      
          
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        Empowering People and Communities Performance Driven Approach 
      
          
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      Two young multi-ethnic men using a digital tablet   They are in a factory or workshop  The mixed race man is holding the tablet, and the other man is pointing to the screen 
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        We believe this diversity strengthens our innovative capacity, unleashes the full potential of our employees, and ult   
      
          
      
          
        Empowering People and Communities Fostering a Culture of Diversity & Inclusion 
      
          
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        The global nature of where we operate and live reflects diversity and inclusion in everything we do 
      
          
      
          
        2019 Results    16% female representation globally    18% female representation among salaried employees    25% repre   
      
          
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        One of the key steps the company needed to address at the time of construction was how to identify and equip the work   
      
          
      
          
        Empowering People and Communities On Track in India
      
          
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        The introduction of high performing teams has drastically changed how work was done  Previously I was focused on my o   
      
          
      
          
        Sitting on a stretch of land that spans over 200 acres is Wabtec s state-of-the-art locomotive factory in Marhowrah,    
      
          
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        For over 150 years, Wabtec has been driven by a commitment to have meaningful, sustainable impact in the communities    
      
          
      
          
        Empowering People and Communities Community Impact
      
          
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                      of all charitable grants will support organizations and volunteerism that prioritize sustainability and   
      
          
      
          
        45% 
      
          
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        Since 1995, Wabtec employees in Erie, Pa , have conducted the Bids for Kids program and raised over  2 1 million for    
      
          
      
          
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      ,Investment in Education In 2010, the Wabtec Foundation established a scholarship program to assist the children of i   
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        As Science, Technology, Engineering and Math (STEM) education expands globally, a teacher- and student-focused approa   
      
          
      
          
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         BLM-Idaho s Clay Stephens Assists with Australian Bushfires  by BLMIdaho is licensed under CC BY 2 0
      
          
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        The summer of 2020 in Australia brought with it the worst bushfires the country had ever seen with 34 lives lost, 18    
      
          
      
          
        Wabtec employees have long supported Junior Achievement through hands-on curriculum delivered by classroom volunteers   
      
          
      
          
        In Brazil, the Wabtec team conducted a used clothing drive in partnership with the Social Fund of Solidarity to colle   
      
          
      
          
        Australia
      
          
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        Wabtec s commitment to our communities encompasses both philanthropic and economic development investments—and we kno   
      
          
      
          
        I gained a tremendous amount of self-respect through the Swabhiman Training Centre  Bindu Devi former student who now   
      
          
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        Focus Area,Baseline ( 19 YE),2030 Goal,Measurements & Perspective,Innovation ,,,,Increase net sales driven by Wabtec    
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        Focus Area,Baseline ( 19 YE),2030 Goal,Measurements & Perspective,Safety ,Reduce workplace injury and illness rate ,1   
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        Wabtec prioritizes diversity, inclusion, and integrity throughout all aspects of our operations  We continue to devel   
      
          
      
          
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        WabtecCorp.com
        WabtecCorp.com
      
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          2020 by Wabtec Corporation  All rights reserved  
      
          
      
          
        Wabtec Corporation 30 Isabella Street Pittsburgh, PA 15212 USA 
      
          
      
          
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