Coherent Issues Its ESG Report 2023 and Sets a Net Zero Greenhouse Gas Emissions Target of FY2040

Rhea-AI Summary

Coherent Corp. (NYSE: COHR) has published its Environmental, Social, and Governance (ESG) Report 2023, setting a net-zero Scope 1 and Scope 2 greenhouse gas emissions target of FY2040. The report highlights the company's commitment to sustainability, diversity, and innovation, including obtaining over 50% of its global energy needs from renewable sources and launching initiatives for sustainable procurement and product development.

Insights

Sustainability Analyst

Coherent Corp's commitment to achieving net-zero Scope 1 and Scope 2 greenhouse gas emissions by FY2040 is a proactive step in aligning with global sustainability goals. The move towards sourcing over 50% of their energy needs from renewable sources is a significant indicator of progress in their environmental strategy. This transition not only reduces their carbon footprint but also potentially insulates the company from future energy price volatility associated with fossil fuels.

The harmonization of policies post-acquisition and the enhancement of diversity, equity and inclusion efforts reflect a strategic approach to talent management and corporate governance. This could lead to improved employee engagement and operational efficiency, which are critical factors in driving business performance.

Furthermore, the development of SiC substrates and MOSFETs is indicative of Coherent's investment in technologies that enable energy efficiency. This positions the company favorably in markets focused on electric vehicles and renewable energy systems, which are expected to grow substantially in the coming years.

ESG Investment Analyst

In the context of ESG investing, Coherent's comprehensive ESG Report 2023 and the steps taken to align with the Responsible Business Alliance (RBA) Code of Conduct, United Nations Global Compact (UNGC) and Sustainable Development Goals (SDGs) could enhance the company's attractiveness to socially responsible investors. The standardization of ESG reporting according to the SASB framework improves transparency and allows for better comparability with industry peers.

The company's supply chain decarbonization program and adoption of RBA Code of Conduct for suppliers indicate a robust approach to managing ESG risks in the supply chain. This could mitigate future regulatory and reputational risks, contributing positively to long-term shareholder value.

Corporate Governance Expert

The role of Coherent's Board of Directors in overseeing the company's ESG strategy and the active involvement of the Environmental, Social and Governance Committee at the board level suggest a strong governance structure. This level of oversight is crucial for ensuring accountability and alignment of ESG goals with overall business strategy.

Standardizing global policies and ensuring compliance with international frameworks like the ILO demonstrates a commitment to ethical business practices. Such measures can enhance the company's reputation and potentially lead to better stakeholder relations and improved market positioning.

PITTSBURGH, Dec. 20, 2023 (GLOBE NEWSWIRE) -- Coherent Corp. (NYSE: COHR), a leader in materials, networking, and lasers, today published its Environmental, Social, and Governance (ESG) Report 2023 and announced that it has set a net-zero Scope 1 and Scope 2 greenhouse gas (GHG) emissions target of FY2040. The ESG Report 2023 is available on the Coherent website at this link.

“By establishing a net-zero target for Coherent, we reached a significant new ESG milestone,” said Dr. Vincent D. Mattera, Jr., Chair and CEO. “It not only represents the great strides we’ve made in the past year, but it also elevates and makes transparent our level of commitment to create long-term value for all our stakeholders through ESG programs that are sustainable, inclusive, principled, and innovative.”

Highlights from the ESG Report 2023 include:

• Environment: In addition to establishing a net-zero Scope 1 and Scope 2 GHG emissions target of FY2040, the company is now obtaining >50% of its global energy needs from renewable energy sources. This represents over 400,000 MWh of renewable energy, mitigating more than 175,000 metric tons of CO₂ emissions annually.
  
  
• People: The company streamlined its talent management processes to improve the experience for both managers and employees; expanded its diversity, equity, and inclusion efforts; and harmonized practices and policies following the July 2022 acquisition of the former Coherent, Inc.
  
  
• Governance: Coherent confirmed its commitment to comply with the Responsible Business Alliance (RBA) Code of Conduct and launched a new ESG webpage with links to its ESG Report and related policies. Over two dozen ESG-related policies have been updated and standardized globally, and are grounded in the principles of the RBA, the United Nations Global Compact (UNGC) and Sustainable Development Goals (SDGs), and the International Labor Organization (ILO).
  
  
• Products: Coherent’s silicon carbide (SiC) substrates and the SiC metal-oxide semiconductor field-effect transistors (MOSFETs) fabricated on them will further enable customers to bring to market ever-more efficient high-performance electric vehicles, industrial motors, and renewable energy systems.
  
  
• Sustainable Procurement: Coherent issued a Supplier ESG Standards statement, adopted the RBA Code of Conduct as its supplier code of conduct, and issued an updated Supplier Diversity statement. The company also launched a project to develop a supply chain decarbonization program.
  

As stated in the report, Coherent considers that all its employees and entire supply chain contribute to the company’s ESG performance. The company supports standardization of ESG reporting, and its report is indexed according to the SASB (Sustainability Accounting Standards Board) framework. Coherent reports its GHG emissions and water usage publicly through CDP and supports its customers’ requests for ESG information through standard surveys such as those from EcoVadis and RBA. Management of Coherent is overseen by a highly qualified and diverse Board of Directors. The company’s sustainability vision is guided at the highest levels of the Board by its Environmental, Social, and Governance Committee.

About Coherent

Coherent empowers market innovators to define the future through breakthrough technologies, from materials to systems. We deliver innovations that resonate with our customers in diversified applications for the industrial, communications, electronics, and instrumentation markets. Headquartered in Saxonburg, Pennsylvania, Coherent has research and development, manufacturing, sales, service, and distribution facilities worldwide. For more information, please visit us at coherent.com.

Contact

Mark Lourie
Vice President, Corporate Communications
corporate.communications@coherent.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/b9c27c03-8071-4da5-8cf1-473ea32c714d

FAQ

What did Coherent Corp. (NYSE: COHR) announce in its ESG Report 2023?

Coherent Corp. (NYSE: COHR) announced a net-zero Scope 1 and Scope 2 greenhouse gas emissions target of FY2040 in its ESG Report 2023, highlighting its commitment to sustainability.

Where can the ESG Report 2023 be found?

The ESG Report 2023 can be found on the Coherent website at the provided link.

What are the highlights of Coherent Corp. (NYSE: COHR)'s ESG Report 2023?

The highlights include obtaining over 50% of global energy needs from renewable sources, initiatives for sustainable procurement, product development for efficient electric vehicles, and diversity and inclusion efforts.

How is Coherent Corp. (NYSE: COHR) contributing to sustainable procurement?

Coherent Corp. (NYSE: COHR) has issued a Supplier ESG Standards statement, adopted the RBA Code of Conduct as its supplier code of conduct, and launched a project for supply chain decarbonization.

What standards does Coherent Corp. (NYSE: COHR) follow for ESG reporting?

Coherent Corp. (NYSE: COHR) follows the SASB framework for ESG reporting, indexes its report accordingly, and publicly reports its GHG emissions and water usage through CDP.

How is Coherent Corp. (NYSE: COHR) managing its sustainability vision?

Coherent Corp. (NYSE: COHR)'s sustainability vision is guided by its Environmental, Social, and Governance Committee at the highest levels of the Board of Directors.

What is Coherent Corp. (NYSE: COHR)'s commitment to diversity and inclusion?

Coherent Corp. (NYSE: COHR) has expanded its diversity, equity, and inclusion efforts and harmonized practices following an acquisition to improve talent management processes.

What products are highlighted in Coherent Corp. (NYSE: COHR)'s ESG Report 2023?

Coherent Corp. (NYSE: COHR) highlighted silicon carbide substrates and MOSFETs fabricated on them, enabling efficient electric vehicles, industrial motors, and renewable energy systems.