Smmertime at Gentex, 2017 Zeeland, Michigan Corporate Headqarters Sstainability Report Jne 2018 Update
Table of Contents 03 INTRODUCTION 03 Gentex Vision Matters 04 Message from Sstainability Coordinator 05 GEMS 05 Gentex Environmental Management System (GEMS) 06 Energy and Climate Change 07 Renewable Energy Electric Use Natral Gas Use Greenhose Gas Emissions VOC Air Emissions Process Water Use 11 Waste and Recycling Electronic Recycling Event Solid Waste to Landfill Solid Waste Recycled Reglated Waste 15 Gentex Sstainability Initiatives 18 GEMS Annal Goals 20 SOCIAL RESPONSIBILITY 20 Corporate Wetlands Mitigation 21 Sbstances of Concern and End-of-Life Vehicles 22 Conflict Minerals 23 Hman Rights 24 DIVERSITY & QUALITY 24 Diversity 25 Gentex Hiring Diversity/ EEO Policy 26 Minority Spport 27 Gentex Spplier Diversity 28 Minority Sorcing Awards 29 Sppliers 30 Qality 31 HEALTH & WELL-BEING 31 Health and Well-Being 32 Health Services 33 Gentex Facilities 34 Injry Prevention 34 Gentex Safety 35 COMMUNITY 35 Commnity Service 36 Commnity Share 37 Commnity Share Partners 38 WORKPLACE 38 A Great Place to Work 39 Legal Compliance 39 Code of Bsiness Condct and Ethics 2 / 39
Gentex Vision Matters Gentex is a leading manfactrer of proprietary electro-optical prodcts for the atomotive, fire protection and aerospace indstries. Or goal is to provide a smarter vision. Or atomotive prodcts improve the driver s ability to see, be seen, recognize, monitor and react to their srrondings. Or rearview mirrors darken to protect the driver s eyes from blinding glare. Or atomotive camera systems optimize forward and rearward visibility. Or signaling devices make sre drivers see and are seen by vehicles in their blind spots. Or fire protection prodcts see smoke and activate related signals and alarms. Or aerospace prodcts allow passengers to see as mch or as little as they want throgh or controllable windows. We make prodcts designed to enhance yor safety and well-being becase vision matters. For more information on Gentex and its prodcts visit: www.gentex.com 3 / 39
Message from Sstainability Coordinator SCOTT RYAN General Consel and Corporate Secretary / Sstainability Reporting Coordinator Social responsibility has been the focs of or bsiness from the start. From fire protection warning devices to atomotive prodcts and featres that protect drivers and their passengers from road hazards, Gentex has always been in the bsiness of safety. In alignment with or Board of Directors, the Company incorporates environmental, social, and corporate governance isses into or decision-making processes and or bsiness policies, operating in accordance with all applicable laws and seeking adherence with international hman rights conventions in defiance of child labor, forced labor, and hman trafficking. The annal pdate to this report provides the reslts of or programs and information on the policies and practices that gide or environmental, social, and corporate governance, indstry best practices, and or continos improvement. For the latest pdate of Gentex sstainability programs, visit: www.gentex.com/corporate/sstainability 4 / 39
Gentex Environmental Management System (GEMS) Gentex seeks to manage its environmental responsibilities in a systematic manner and provide assrance to company management and employees, as well as external stakeholders, that or environmental impact is being measred and improved. In 1999, Gentex established an environmental management system based on the ISO 14001 international environmental management standard. ISO 14001 specifies the reqirements for an environmental management system that we se to enhance and manage or environmental performance. The framework helps s minimize adverse environmental affects from or operations while ensring compliance with applicable laws, reglations, and other environmentally oriented reqirements. Gentex gained ISO 14001 certification in 2002 and again in 2017. The ISO 14001 international environmental standard became the fondation for the Gentex Environmental Management System and contines to coordinate with or Environmental Policy, allowing s to integrate environmental efficiency into or processes. Gentex also considers other standards and accords, sch as the Paris Accord, when modifying and implementing GEMS. On the pages that follow, we provide an overview of the varios metrics we track to gage the environmental performance of or manfactring facilities. To help qalify these figres and provide a frame of reference, most of the metrics are expressed as a measre of nit (per mirror) prodction. mirror prodction 2013 27,449,822 2014 31,079,818 2015 32,794,482 2016 34,650,669 2017 39,471,219 5 10 15 20 25 30 35 40 millions 5 / 39
Energy and Climate Change Energy sstainability and global climate change are two of the most serios and difficlt environmental challenges facing society today. Gentex is committed to improving energy-efficiency where practicable. As more energy-efficient alternatives for eqipment are developed, we try to tilize those alternatives for eqipment replacement and for new eqipment installations. We are also working to se less energy in the operation of or manfactring plants throgh atomated bilding management systems and by tilizing the most energy-efficient lights and HVAC eqipment. Gentex also participates in the local Energy Smart Program, which promotes the implementation of progressive energy efficiency projects. Over the years, Gentex has achieved the maximm goal possible in the ESP for implementing lighting and HVAC improvements, condcting compressed air leak adits and installing new bilding control systems. 6 / 39
Renewable Energy Gentex prchases its energy for its Zeeland and Holland facilities from the Zeeland Board of Pblic Works (ZBPW), which complies with Pblic Act 295 and reqires the company s energy portfolio to inclde specified levels of renewable energy. PA295 reqires alternative energy sorces to comprise 10 percent of the ZBPW s energy portfolio. Crrently, these forms of renewable energy inclde wind and landfill gas. Additional information can be fond at: http://www.bpw.zeeland.mi.s. 7 / 39
Electric Use Electricity consmed to operate Gentex s manfactring facilities, machinery and eqipment. annal total mirror prodction sq. ft of bilding footprint kwh/mirror 2013 95,787,535 27,449,822 1,583,409 3.49 2014 104,902,661 31,079,818 1,593,409 3.38 2015 117,853,278 32,794,482 1,638,609 3.59 2016 128,755,047 34,650,669 1,994,999 3.72 2017 139,303,713 39,471,219 1,994,999 3.53 1 2 3 4 5 kwh 6 Natral Gas Use Natral gas consmed primarily to heat facilities. annal total mirror prodction sq. ft of bilding footprint ft3/mirror 2013 109,558,565 27,449,822 1,583,409 4.05 2014 129,704,797 31,079,818 1,593,409 4.17 2015 107,722,257 32,794,482 1,638,609 3.28 2016 128,961,897 34,650,669 1,994,999 3.72 2017 158,225,365 39,471,219 1,994,999 4.01 1 2 3 4 5 ft 3 6 Notes: Usage figres on this page are expressed as a measre of nit (per mirror) prodction. Electric se is directly related to facilities cooling, and flctates depending on seasonal cooling reqirements. Facility expansions also increase sage. Natral gas sage is directly related to facilities heating, and flctates depending on seasonal heating reqirements and the severity of winter. Facility expansions also increase sage. 8 / 39
Greenhose Gas Emissions There are two primary types of greenhose gas emissions: Scope 1 Emissions These are emissions that Gentex directly controls (combstion of natral gas for boilers/heating, gas consmed in company vehicles, and losses in cooling refrigerants). Scope 2 Emissions Emissions from electricity we prchase. 2013 Greenhose Gas (METRIC TONS) SCOPE 1 EMISSIONS Stationary Combstion 6,070 Company Vehicles 130 Refrigerant 15 SCOPE 2 EMISSIONS Prchased Electricity 62,640 2014 Greenhose Gas (METRIC TONS) SCOPE 1 EMISSIONS Stationary Combstion 7,081 Company Vehicles 109 Refrigerant 4.8 SCOPE 2 EMISSIONS Prchased Electricity 67,844 2015 Greenhose Gas (METRIC TONS) SCOPE 1 EMISSIONS Stationary Combstion 5,877 Company Vehicles 111 Refrigerant 12.6 SCOPE 2 EMISSIONS Prchased Electricity 76,164 2016 Greenhose Gas (METRIC TONS) SCOPE 1 EMISSIONS Stationary Combstion 7,036 Company Vehicles 168 Refrigerants 19 SCOPE 2 EMISSIONS Prchased Electricity 83,848 2017 Greenhose Gas (METRIC TONS) SCOPE 1 EMISSIONS Stationary Combstion 8,633 Company Vehicles 160 Refrigerants 32 SCOPE 2 EMISSIONS Prchased Electricity 90,026 Note: Gentex remains below federal reporting thresholds for Scope 1 Emissions. 9 / 39
VOC Air Emissions Volatile organic componds sed in Gentex operations inclde solvents, adhesives and chemical componds sed in the formlation of chemical sbassemblies. annal total mirror prodction lbs/mirror 2013 79,498 27,449,822 0.0029 2014 106,622 31,079,818 0.0034 2015 117,302 32,794,482 0.0036 2016 101,203 34,650,669 0.0029 2017 96,250 39,471,219 0.0024.001.002.003.004.005 lbs.006 Process Water Use Process water se consists of the water sed dring mirror prodction, primarily in glass washing operations. annal total mirror prodction gal/mirror 2013 126,507,991 27,449,822 4.61 2014 133,076,145 31,079,818 4.28 2015 165,368,368 32,794,482 5.04 2016 192,538,980 34,650,669 5.56 2017 210,922,512 39,471,219 5.34 1 2 3 4 5 gal 6 Note: Emissions/sage figres on this page are expressed as a measre of nit (per mirror) prodction. 10 / 39
Waste and Recycling Gentex cltivates indstry-defining capabilities to develop and manfactre high-qality prodcts for the atomotive, aerospace, and commercial fire protection indstries. This incldes advancing technologies to redce waste while increasing recycling and rese. Recycling is a key component of sstainability and plays a major role in redcing waste in or manfactring plants. Gentex has a robst recycling strategy in place to prevent scrap commodities from ending p in the landfill. We have invested sbstantial time and money into developing or manfactring process to monitor and minimize waste while promoting recycling. In an effort to phold the vales of sstainability, Gentex increased overall recycling by 14%, improving or recycle/ waste ratio to 65% recycling and 35% landfill. Landfill Recycling 2016 waste and recycling 40% 60% 2017 waste and recycling 35% 65% 11 / 39
Gentex Electronic Recycling Event In 2017, Gentex partnered with Green Earth Electronics Recycling to hold a company-wide event allowing employees an opportnity to responsibly dispose of non-prodction electronic waste materials. A grand total of 12,314 lbs of TVs, appliances, compters, and other electronics were reprposed/recycled and kept ot of a landfill. Electronic Recycling EVENT RESULTS JUNE 2017 120 Over the corse of SIX HOURS vehicles dropped off nwanted electronics, inclding... 104 TVs CRTs 5702 lbs LCDs 823 lbs 47 monitors = 1256 lbs THANK YOU Green Earth Electronics Recycling for partnering with s for this event! printers 798 lbs batteries 62 lbs THAT S A GRAND TOTAL OF compters 988 lbs 12,314 lbs misc. 1716 lbs appliances 969 lbs KEPT OUT OF A LANDFILL! Green Earth is dedicated to the proper disposal of electronic eqipment. We strive to keep all items entrsted to s ot of the landfill and do this by finding avenes to re-se, refrbish or recycle these items. Green Earth is a registered recycler with the Michigan Department of Environmental Qality. 12 / 39
Solid Waste to Landfill Solid waste sent to the landfill comes primarily from general manfactring and office trash. annal total mirror prodction nmber of employees lbs/mirror 2013 9,306,900 27,449,822 3,924 0.34 2014 9,691,089 31,079,818 4,342 0.31 2015 13,851,540 32,794,482 4,836 0.42 2016 11,881,616 34,650,669 5,399 0.34 2017 11,137,280 39,471,219 5,663 0.28.1.2.3.4.5 lbs.6 Solid Waste Recycled Gentex attempts to recycle as mch solid waste as possible, which consists primarily of glass, plastic, cardboard and paper scraps from manfactring operations and general office se. annal total mirror prodction nmber of employees lbs/mirror 2013 10,652,226 27,449,822 3,924 0.39 2014 15,618,911 31,079,818 4,342 0.50 2015 17,739,480 32,794,482 4,836 0.54 2016 18,160,695 34,650,669 5,399 0.52 2017 20,440,465 39,471,219 5,663 0.52.1.2.3.4.5 lbs.6 Gentex is crrently recycling more solid waste than it sends to the landfill. Note: Waste and recycling figres on this page are expressed as a measre of nit (per mirror) prodction. 2015 increase in solid waste to landfill is primarily the reslt of waste generated from the constrction of the company s new North Riley facility. 13 / 39
Reglated Waste Reglated waste consists primarily of hazardos materials, inclding liqid indstrial waste, sed oil and niversal waste. annal total mirror prodction lbs/mirror 2013 352,662 27,449,822 0.013 2014 399,143 31,079,818 0.013 2015 490,176 32,794,482 0.015 2016 527,581 34,650,669 0.015 2017 662,275 39,471,219 0.017 lbs.011.013.015.017.019.021.023.025 Notes: All of these waste materials are handled and disposed of by the appropriate treatment storage and disposal facility. Waste figres on this page are expressed as a measre of nit (per mirror) prodction. 14 / 39
Gentex Sstainability Initiatives A Gentex manfactring facility expansion tilizes an ndergrond storm water retention system to redce storm water discharge into the conty drain system. Or irrigation software control system monitors the weather and climate conditions to optimize watering schedles, redcing irrigation water consmption by approximately 25%. Gentex maintains electric-vehicle charging stations on its corporate camps, inclding its new North Riley facility, which helped avoid 15,102 kg in greenhose gas emissions for the 2017 calendar year. Facility roofs tilize white materials to reflect snlight and redce the air conditioning energy consmption by approximately 20%. Gentex tilizes software-managed and occpancy-sensorcontrolled lighting throghot all or facilities. Gentex participates in the EnergySmart Commercial and Indstrial Incentive Programs offered by the ZBPW and SEMCO. These programs encorage participants to save energy, lower energy costs and earn incentives. 2017 marked the fifth consective year that Gentex has adopted a local stretch of road as part of Michigan s Adopt- A-Highway program, which sees local organizations participate in highway cleaning and beatification efforts. Michigan s program dates back to 1990 and crrently removes more than 70,000 bags of trash annally. 15 / 39
Gentex Sstainability Initiatives (contined) A centralized water chiller plant provides chilled water to all of or facilities from one location, allowing s to decrease overall energy sage. Air economizers and energy recovery nits are integrated on or HVAC systems. Energy-efficient florescent lights are tilized in all areas. New and renovated areas are moving to LED technology. All Gentex tility and HVAC systems are managed by comptercontrolled software, allowing for improved performance and energy redction. Gentex captres the excess heat from the compressed air system and ses it to pre-heat/temper the water sed in the prodction process, ths eliminating the need for axiliary heaters in the water basins. Excess warm water from the prodction process is sed to temper the boiler/snowmelt water, redcing boiler energy consmption. Gentex s water recovery system collects water sed in the prodction lines, sanitizes it, and sends it back for se in a secondary manfactring process, which helps redce overall water sage. VFDs (variable freqency drives) are installed on all motors and pmps. 16 / 39
Gentex Sstainability Initiatives (contined) Low-flow facets are sed within the facilities. Facility carpets have 30-50% recycled content and are 100% recyclable. Gentex maintains a bicycle fleet, with individal bikes (called G-Cycles), positioned at strategic locations arond its corporate camps. Employees can se these bikes instead of gas-powered vehicles when traveling to different Gentex facilities. This bicycle fleet will contine to expand as or camps grows. Gentex facilities tilize an inslated metal panel system for the exterior walls in order to improve energy efficiency. All concrete removed dring remodeling/renovations is saved and crshed onsite, then resed as base material for new parking lots and driveways. Gentex maintains a bs shelter for the Macatawa Area Express (MAX) Transportation Athority, in order to promote bs ridership among employees and the commnity in general. The shelter is located near or Riley Street Facility and serves mltiple area bsinesses. The shelter, which the company also cleans and maintains, is designed to protect sers dring inclement weather. Gentex integrated a green roof into its North Riley Street facility (bilding 1). Drinking fontains with the water bottle refill featre avoided the disposal of 114,550 plastic water bottles for calendar year 2017. 17 / 39
GEMS Annal Goals As an engineering company, continos process improvement is something we ve long been committed to practicing. We are constantly looking for new ways to increase the efficiency of or prodction and distribtion process while also enhancing the effectiveness of or end prodcts. Each year, as part of or GEMS, we develop new initiatives to redce, rese and recycle. These goals are set annally and are designed, in part, to engage team members in the effort to spport continos improvement in or environmental performance and to seek ot smarter ways to minimize waste and prevent polltion. 2017 Goals Redce Electrical Consmption Retrofit glass benders by replacing electric IR heaters with gas IR brners. Annal electrical savings goal of 15,000,000 kwh. TARGET REALIZATION: Retrofitted a portion of the benders in 2017 reslting in immediate electrical savings. Retrofitting of glass benders is still an ongoing process. Redce Greenhose Gas Emissions Redced scope 3 greenhose emissions for calendar year 2017 when compared to calendar year 2015 throgh varios means. Redced air freight transportation and increased ocean freight transportation of finished goods. The average CO2 emissions per metric ton of freight and per km of transportation was 500 grams for air cargo and 40 grams for sea freight. Redced trck freight transportation of manfactring solvents. Annal fel consmption redction goal was 8000 gallons, miles driven redction goal was 37,728, and greenhose gas emissions redction goal was 82 metric tons. Redced trck freight transportation of recyclable materials. Annal redction goal of diesel fel consmption was 520 gallons and annal greenhose gas emissions redction goal was 5 metric tons. TARGET REALIZATION: Redced scope 3 greenhose gas emissions 10% for calendar year 2017 compared to calendar year 2015. 18 / 39
GEMS Annal Goals (contined) 2018 Goals Redce Wastewater Redce wastewater from aerospace/ecw prodction. Annal water savings goal of 574,882 gallons. Redce Landfill Waste Implement recycling program in electrical assembly for polyethylene bags to redce landfill waste by roghly 7,860 lbs annally. 19 / 39
Corporate Wetlands Mitigation Program As part of the constrction of the company s North Riley Camps, Gentex worked with the Michigan Department of Environmental Qality on a wetlands mitigation project. We constrcted three distinct wetlands and wildlife habitat areas totaling 3.25 acres, which we now monitor closely. Since their creation, these wetland areas have become home to a wide variety of wildlife species, inclding frogs, toads, btterflies, dragonflies, Goldfinches, songbirds, dcks, cranes, woodpeckers, herons and deer, among other animals. The wetlands are a beatifl addition to or camps and the local commnity. Gentex also financially spports other local wetlands. 20 / 39
Sbstances of Concern (SoC) and End-of-Life Vehicles Atomobile manfactrers and government agencies have established standards that prohibit or limit the se of sbstances of concern (SoC) within vehicles. Tracking and verification of SoC content is done throgh the International Material Data System (IMDS), a web-based system that provides atomotive sppliers a common format to report the percentage of SoC contained within manfactred parts. This provides atomobile manfactrers with the necessary information to certify they are compliant with national and international standards, laws and reglations. Gentex is committed to SoC compliance both domestically and abroad. Or SoC strategy reqires that we work across fnctions, cstomers and contries to ensre prodct adherence to cstomer specifications and government reglations sch as the End-of-Life Vehicle (ELV) Directive; Registration, Evalation, Athorization and Restriction of Chemicals (REACH); and other standards and laws that restrict or prohibit SoC. We strive for aggressive, proactive compliance whenever possible. For instance, in the early 2000s, Gentex lanched a green mirror initiative that coincided with the Eropean Union s introdctory End of Life Vehicle (ELV) measres, and is designed to remove certain heavy metals from or mirrors and prodction methods. As a reslt, we developed all-new, cadmim-free digital light sensors, new lead-free reflective coatings, and lead-free wire harnesses and soldering methods. 21 / 39
Conflict Minerals Gentex operates with a formal Conflict Minerals Policy. Conflict minerals are those mined, primarily in the Democratic Repblic of the Congo, to finance armed conflict and hman rights abses. If the sorces of these minerals are not traced and adited, they can find their way into the spply chain, as they are essential to the manfactre of atomotive and consmer electronics. Gentex s Spply Chain Management manages to this policy in compliance with the Dodd-Frank conflict minerals reglation and cstomer reqirements while demonstrating socially responsible spply chain practices. Gentex is a member of the Conflict Free Sorcing Initiative (CFSI). For more information on Gentex s Conflict Minerals Policy, visit: www.gentex.com/conflict-minerals-policy.pdf AA MINE 5061281 22 / 39
Hman Rights Social responsibility has been the focs of or bsiness from the start. From fire protection warning and notification devices to atomotive prodcts and featres that protect drivers and their passengers from road hazards, Gentex has always been in the bsiness of safety. In alignment with or Board of Directors, operating in accordance with all applicable laws is expected, as is seeking adherence with international hman rights conventions in defiance of child labor, forced labor and hman trafficking, always in a sstainable manner. Gentex is committed to condct bsiness in accordance with the letter and the spirit of all applicable laws, rles and reglations as set forth in or Code Of Bsiness Condct and Ethics. Gentex respects all applicable laws prohibiting the se of child labor, forced labor and hman trafficking, and we manage or bsiness in a manner consistent with fndamental hman rights. We work to apply these principles in those with whom we do bsiness. Gentex s Code of Bsiness Condct and Ethics can be fond at: www.gentex.com/code-of-ethics.pdf 23 / 39
Diversity and Eqality Gentex is committed to spporting diversity in all facets of its bsiness. We operate with formal Hiring and Spplier Diversity Policies. In addition, Gentex complies with the specific diversity programs developed and administered by all of or cstomers. Gentex is a member of the Michigan Minority Spplier Development Concil and the Women s Bsiness Enterprise Concil Great Lakes Region. Over the years, Gentex has been recognized by mltiple OEM cstomers for actively developing and sing minority- and woman-owned Tier II sppliers. In 2017, and for five years in a row, Gentex was recognized by Toyota Motor Engineering & Manfactring North America, Inc. for or ongoing efforts to increase spplier relationships with local minority bsiness enterprises. Gentex is a member of the Michigan Minority Spplier Development Concil and the Women s Bsiness Enterprise Concil Great Lakes Region. 24 / 39
Gentex Hiring Diversity/EEO Policy Gentex spports an environment of eqal employment opportnities and will maintain and condct all practices relating to recritment, hiring, promotion, discipline and other terms and conditions of employment in a manner which does not discriminate on the basis of race, color, religion, national origin, age, sex, sexal orientation, handicap, marital stats, military service, height or weight. Gentex s EEO Policy and careers information can be fond at: www.gentex.com/careers www.gentex.com/careers/working_with_s.html 2017 Recriting Involvement Mltiple Diversity Career Fairs HR/Hiring Managers Diversity Training Diversity Advertisement Programs 25 / 39
Minority Spport In 2017, Gentex made charitable contribtions to several minority organizations to spport the commnity and phold social responsibility. Minority organizations that were spported in 2017 are listed below: Lakeshore Ethnic Diversity Alliance Holland Yong Professionals LEDA workshop Latin Americans United for Progress STEM Camp for Girls Inform Women s leadership Conferences MSU Diversity Career Fair 26 / 39
Gentex Spplier Diversity It is the policy of Gentex Corporation to increase the bsiness opportnities for certified minority and woman-owned bsinesses. Or commitment is to maximize their participation throgh the development of mtally beneficial bsiness relationships, which will ensre that qality materials and services are provided to the corporation in a timely and cost-effective manner. Joe Matthews, Gentex Vice President of Prchasing and Diversity Officer, accepted on the Company s behalf, an award recognizing Gentex s otstanding performance in sorcing to minority and woman-owned bsinesses. Gentex, at its discretion, will develop mentoring relationships with key minority and womanowned bsiness sppliers to help develop bsiness systems and encorage them with new technologies and ftre growth. We nderstand that the commitment to these bsinesses not only benefits the spplier, bt it also benefits the greater bsiness commnity. Minority spplier development efforts for 2017: Several Gentex exectives participated in the West MI Mentor Me program with minority sppliers Co-Sponsor of Michigan Minority Spplier Development Concil Event at Grand Valley State University entitled One MMSDC: Tapping into Minority Spplier Development Exhibitor at National Minority Spplier Development Conference Exhibitor at Toyota Opportnity Exchange More information on Gentex s spplier programs and spplier diversity policy can be fond at: http://www.gentex.com/spplier-section/20170323-spplier-manal-master.pdf 27 / 39
Minority Sorcing Awards Dring the North American Annal Bsiness Meeting in March of 2017, Gentex once again received a Spplier Diversity Special Recognition Award for spplier diversity performance from Toyota Motor Engineering & Manfactring North America, Inc. The award recognizes or commitment to developing mtally beneficial Tier II spplier relationships with local MBEs. ROBERT YOUNG Grop VP TMNA R&D Prchasing and Spplier Engineering Development and Cost Planning We are pleased to recognize those in or spply base who exceed or high performance targets and allow s to bild ever better vehicles. 28 / 39
Sppliers JOE MATTHEWS Vice President of Prchasing As a global company, Gentex is keenly aware of its roles and responsibilities as it relates to sstainability and bsiness ethics. We re continosly seeking ways to improve or proficiency in meeting and exceeding or long-established standards for environmental stewardship and social responsibility. It has always been or priority to operate sstainably, and, conseqently, we re committed to environmental, social and reglatory best practices. This commitment extends to or spply base. We expect or sppliers to work with s to spport the Gentex sstainability initiatives defined throghot this report in their own operations. By working in concert with or bsiness partners we re better able to implement holistic spply chain standards. http://www.gentex.com/spplier-section/20170323- Spplier-Manal-Master.pdf 29 / 39
Qality At Gentex, qality is or highest priority. In fact, or policy is to be or cstomers reference point for qality and service. We re committed to maintaining leadership roles in the atomotive, fire protection and aerospace indstries throgh innovative technology and sperior prodcts and services. Or framework to meet this commitment incldes providing a safe and professional work environment, fostering a cltre of continos improvement and proactive problem solving, offering vigoros training programs, empowering employees, and developing partnerships with or cstomers and sppliers. As in all areas of the bsiness, we believe qality is enhanced throgh the strict adherence to or larger sstainability initiatives, and as a global spplier, we strive to protect the environment throgh or ISO 14001 programs and certification. In 2017, some qality highlights inclded: GM Spplier of The Year (19-time winner) SMR Global Spplier of The Year (2-time winner) Ford World Excellence Award General Motors Spplier Qality Excellence Award Sbar of America 2016 Silver Achievement Award 2017 FCA Body Spplier of the Year 30 / 39
Health and Well-Being Sponsored Racing Events As part of or commitment to sstainability and corporate responsibility, Gentex strives to look ot for the health and well-being of its employees. The benefits, services and facilities we provide not only encorage employees to own their health, bt also remove any potential financial barriers to leading a healthier lifestyle. Gentex sponsors a nmber of racing events to spport the commnity and the health of its employees. In 2017, Gentex offered disconts for seven races inclding the Grand Rapids Color Rn, Fifth Third Riverbank Rn, and the Zeeland Trkey Trot. Heading into 2018, the nmber of sponsored races contines to grow. In 2018, disconts will be offered to employees for the following race events: MAY Tlip Time Rn and Fifth Third Riverbank Rn JUNE Zeeland Zoom 5K JULY Holland 100 SEPTEMBER Pedal The Provinces and Park 2 Park NOVEMBER Zeeland Trkey Trot 8k TBD Grand Rapids Color Rn Team Sponsorship Program In 2017, Gentex sponsored 70 different employee recreation teams throgh the Team Sponsorship Program. The program financially spports the team to encorage employees to participate in enjoyable, healthy recreation activities and sports. 31 / 39
Health Services Health Programs Gentex administers a nmber of health-related programs, inclding bt not limited to maternity management services, a diabetes management program, and Smart Health, a new program introdced in 2018 that gives participating employees an easy way to earn wellness credits toward weekly medical premims while improving their overall wellness at the same time. Gentex partnered with Viverae to bring Smart Health to or employees. Smart Health provides the tools, resorces, and edcational materials needed to bild healthier habits over time. Employees and their sposes enrolled in the Gentex Health plan will receive credits toward a lower weekly medical premim based on the nmber of points they earn. Gentex also spports 100% preventative care, physicals, and health assessments while maintaining on-site health care facilities for team members. Ntritional Seminars Gentex recrits registered dietitians to edcate employees on the importance of ntrition and eating healthy. Employees are able to gain knowledge on food prep, foods to avoid, and even goal setting. Crop Share To spport or local farms, Gentex partnered with Crisp Contry Acres to offer employees fresh frits and vegetables weekly. Commnity Spported Agricltre (CSA) pick p is conveniently located at: Gentex Wellness Center North Riley Camps James Street Camps 32 / 39
Gentex Facilities To promote physical health, Gentex operates its own wellness center otfitted with aerobic exercise machines and weight eqipment. We also provide company-sbsidized fitness classes. Gentex employees have access to 30 different grop fitness classes per week, accompanied with access to local walking, rnning and biking paths adjacent to or corporate camps. The Gentex Wellness Center contines to optimize space and eqipment as an increasing nmber of employees strive to own their health. An on-site health clinic affords employees the opportnity to receive high-qality healthcare right at the workplace with no ot-of-pocket co-pay. 33 / 39
Injry Prevention Gentex is extremely prod of its workplace injry prevention programs, which have achieved workplace injry rates well below the indstry average. Indstry Average Gentex s Rate INJURY INCIDENT RATE PER 100 EMPLOYEES 5.0 4.0 3.0 2.0 1.0 0 2013 2014 2015 2016 2017 Gentex Safety Safety is an integral part of each employee s job and plays a vital role in preserving the resorces or employees provide. For all Gentex team members, safe work practices are essential to ensre the well being of all employees, visitors and cstomers, in addition to the operation of a profitable and qality-oriented organization. Gentex enjoys an otstanding reptation as a leader in the atomotive, fire protection and aerospace indstries created by or commitment to safety, qality, and overall prodct excellence. Throgh firm adherence to established safety policies and procedres together we can contine the tradition of excellence known as Gentex. 34 / 39
Commnity Service Gentex s headqarters is located in Zeeland, Michigan, jst mintes from the beatifl shores of Lake Michigan and the exciting metropolitan city of Grand Rapids. The West Michigan commnity is known for its philanthropic natre and for a niqe cltre of cooperation that yields nprecedented levels of pblic and private sector collaboration. Together, bsinesses, nonprofits, government entities and the like work to continally strengthen the West Michigan economy while making the area a great place in which to live, work and raise a family. In 2017, Gentex Corporation donated to hndreds of individal local charities and events in the following major categories: K-12 edcation Pre-kindergarten programs College and Universities Diversity programs Local commnity health care programs Hosing assistance programs Mental health programs Eldercare Jobs training programs Programs for the disabled Family assistance Homeless Physical and sbstance abse programs 35 / 39
Commnity Share Gentex and its team members are at the forefront of efforts to continally strengthen or commnity. That s why in addition to or corporate gifting program, Gentex operates Commnity Share, an employee-rn commnity service and financial spport program that over the years has benefited women abse spport centers, organizations for children with special needs, health clinics, hosing stabilization services for the homeless, edcation assistance and addiction recovery programs. Commnity Share solicits grant proposals from local organizations and then develops niqe fndraising events and service opportnities in which Gentex team members can participate. Gentex employees can also contribte financially directly to Commnity Share throgh payroll dedction, and a generos corporate matching program boosts the overall yearly gifting amont. This year, Gentex raised $170,000 between employee and corporate donations! In 2017, Commnity Share financially spported over 20 different commnity organizations, inclding children s camps, recovery services, homeless initiatives and hospice care, among others. 36 / 39
2017 Commnity Share Partners Gentex raised $170,000 between employee and corporate donations! Arbor Circle Boys and Girls Clb of Grand Rapids Boys and Girls Clb of Holland Camp Snshine Center for Women in Transition Children s Advocacy Center City on a Hill Ministries Commnity Action Hose Compassionate Heart Ministries Evergreen Commons Good Samaritan Ministries Holland Resce Mission Hope Network Hospice of Holland Kids Food Basket Ladder Homes Lakeshore Habitat for Hmanity Lakeshore Toys for Tots Midtown Conseling Services Ottagon Addiction Recovery Ready for School The Bridge Yoth Center 37 / 39
A Great Place to Work Or ongoing efforts to look ot for others and create an innovative, healthy, prodctive work cltre have been recognized, most notably, by or own employees. For seven years rnning, Gentex has received a regional Top Workplaces Award, which is administered and sponsored by Workplace Dynamics in conjnction with the Detroit Free Press. The award is based on the reslts of employee srveys condcted anonymosly that evalate critical workplace measres sch as organizational health, corporate direction, vales and ethics, employee job satisfaction and engagement. In 2017, Gentex was ranked 18th among large companies and 2nd in the manfactring category. Gentex was indcted into the Detroit Free Press Circle of Excellence in 2015 as one of the best places to work in Michigan, now for the 7th consective year. A complete list of top workplaces for 2017 can be fond here: https://www.freep.com/pages/interactives/freep/top-workplaces-2017/ 38 / 39
Legal Compliance and Code of Bsiness Condct and Ethics In compliance with local, state and federal laws and reglations, Gentex takes part in ongoing and thorogh adits of or facilities and manfactring process to ensre contined excellence. Gentex is committed to condct bsiness in accordance with the letter and the spirit of all applicable laws, rles and reglations as set forth in or Code Of Bsiness Condct and Ethics. 2018 Gentex Corporation www.gentex.com 39 / 39