Hello, everyone, and welcome to our ESG webcast. My name is Michael Wilhelm, and I'm part of the Investor Relations and Corporate Development team. Today, we will discuss Wallbox ESG activities and the overall electric vehicles play in our sustainable future. We will be joined by our subject matter expert and Head of ESG at Wallbox, Laura Roca. During this webcast, we will discuss Wallbox ESG commitment and all our efforts on all environmental, social, and governance matters, which are impacting both internal as well as external stakeholders. Before jumping into Wallbox ESG activities, we would like to highlight the company's role in creating a greener and cleaner world through our technology. Contributing 15% of the total global CO2 emissions, conventional road transport is one of the largest contributors to global warming.
On the contrary, electric cars produce 66% less CO2 emissions over their lifetime.
As concerns about climate change continue to grow, electric vehicles or EVs have emerged as a promising solution to reduce greenhouse gas emissions, combat air pollution, and support the climate agenda to limit global warming to 1.5 degrees. EVs are not only a more efficient and cleaner way to get from point A to point B, but together with smart EV charging infrastructure, EVs are a large battery that are supporting the transition towards more renewable energy generation. Due to the nature of renewable energy generation, there's often additional volatility and increased constraints on the energy grid. EVs can provide energy flexibility that helps by creating a more efficient energy grid, which allows us to deploy renewable energy generation on a larger scale faster.
Imagine an EV driver that can store self-generated electricity through their solar panels for a later moment, or on an industrial scale, utilities that use vehicle-to-grid technology to balance the supply and demand of electricity. At Wallbox, we are dedicated to changing the way the world uses energy. We create advanced electric vehicle charging to accelerate the adoption of electric vehicles and energy management system that redefine users' relationship with the grid. Next, to creating products and solutions that contribute to a cleaner and healthier environment, we recognize the importance of incorporating ESG practices across departments. As a global public company listed on the New York Stock Exchange with offices in many countries, we understand our ESG responsibility related to both internal and external activities and stakeholders.
Wallbox's commitment to ESG is strongly ingrained in our corporate strategy and managed by the office of the CEO.
Nevertheless, practical implementation of ESG at Wallbox is still relatively new. Therefore, during this webcast, we would like to introduce you to our initial ESG practices and how we explore ways to put them in place the best class policies. Laura, thank you for joining, and it's great to spend time on the ESG topic. Ahead of moving into the different aspects of ESG, could you explain where we stand as a company regarding ESG and how we compare with benchmarks and our peers?
Thank you for having me, Michael. As already briefly mentioned, we are still a relatively young company that not that long ago became on the New York Stock Exchange, but we became public. That said, we are fortunate because the very nature of Wallbox mission is ESG-centric. At Wallbox, we aim to accelerate the transition to e-mobility, which means our entire company was built around the idea of creating a more sustainable world. Our focus on the environment, or the E, is built into everything we do. Following the IPO two years ago, we knew that we needed to consolidate all of the ESG-related activities across the company into one single department.
This has allowed us to concentrate our efforts on affecting change in the areas of the company that make the largest difference for the company, for the sector, and our society.
Whether that's implementing intelligent energy management systems at our headquarters, for example, creating new internal policies, or tracking our carbon footprint, and performing life cycle assessments on our products. Our department has been able to accomplish a lot in the past two years. So while we may be young, we are still very committed. And coincidentally, since our IPO, it feels like the topic of ESG has exploded. There is exponentially more interest from investors now versus two years ago, but with that interest also comes increased scrutiny. It's more important than ever to be as transparent as possible about our activities and stay up to date on the changing regulations.
We're constantly performing peer analysis and industry benchmarking exercises to ensure that we are compliant with regulations around the globe, and that we are pushing to the company, not only to be a leader in our sector, but also a leader in our ESG practices. As we examine best-in-class policies, protocols, and processes from industry-leading companies, we know that we still have some way to go, but we're very confident we will get there eventually. We're very proud of our accomplishments over the past eight years as a company and two years as the ESG department. And I'm excited to talk more about some of our achievements and how we think about strategy so that our audience gets a sense of our thought processes.
Thank you, Laura. I'm excited, too. So let's start off our ESG discussion on the environmental aspect. Could you elaborate on how Wallbox is supporting the transition to electric transport and smarter use of energy?
Yes, of course. Wallbox plays a crucial role in supporting the transition to electric transport through our innovative charging and energy solutions. It is important to note that at Wallbox, we're not making just any type of chargers, but focused on creating smart chargers that provide value to the end customer, to the end customer and the environment. We provide cutting-edge charging infrastructure for different use cases that offer efficient and convenient charging options for electric vehicles. Charging products for residential, commercial, and public AC include, among others, the Pulsar Family, the Commander, Copper, and Orion. For public DC fast charging, Wallbox offering the Supernova and Hypernova. These products are all developed to enable the widespread adoption of sustainable transportation. The company believes that e-mobility is the key to intelligent energy management.
Because of that, we are developing solutions way beyond just charging, such as optimizing the use of the car battery and integrating the charger with solar panels and stationary batteries. Our Eco-Smart solution allows customers to maximize the potential of their solar panels by diverting any excess energy to charging their car. This ensures our customers with solar panels have the greenest charge possible. We have also developed the world's first DC bi-directional charger for the home. It's called the Quasar. Quasar allows EV drivers to not only charge their car, but also discharge the energy from their car back into the home or back into the grid.
This essentially turns your car into a backup generator, gives users more flexibility to use energy when it's cheaper or greener, and also, in the future, can be used to make grids around the world more resilient.
The backbone of all our chargers is our energy management system called Sirius. Sirius allows users to easily manage the energy from their car, your home, or building. We will talk more about products and software in just a bit, but it's these types of solutions that allowed for a higher renewable energy consumption and more energy usage.
Laura, it's great that Wallbox can make such a positive impact on the environment with our products, but could you elaborate on the company's climate agenda and our internal initiatives to limit our own impact?
Yes, great question, Michael. We're lucky that the core strategy and charging solutions of our company is so intrinsically linked to reducing carbon emissions and accelerating the consumption of renewable energy. By leveraging this strategy and the solutions for internal purposes, Wallbox was able to make an important commitment to achieve Net Zero emissions by 2030. We recognize the urgency and of addressing climate change, and we have set a clear target to net out our carbon footprint within the next decade. This commitment is part of the Climate Pledge, but is more ambitious than their standard guidelines of being Net Zero by 2040.
As a first step, we have been focusing on impact measurement by reviewing our Scope 1, 2, and 3 emissions and completing a Life Cycle Assessment of our main residential and public charging products, including the Pulsar, Supernova, Hypernova, and Quasar.
These impact measurement initiatives will help us to establish a baseline and assess how we can work towards reducing our carbon footprint. In the meantime, though, we're working hard on reducing our internal emissions. In fact, we have been installing a significant amount of solar panels in our headquarters, as well as in our new factory in Barcelona. At our headquarters, we have installed around 1,200 panels. Additionally, we have installed about another 2,000 solar panels in our factory, called E26. The solar panels at our factory are also linked to a power purchase agreement with the energy company, Iberdrola, and can produce around 1,200 MWh of energy a year. We also developed our internal energy, our internal building energy management solutions, called Sirius, which we talked briefly about earlier.
Sirius really ties together our 1,200 solar panels, our 500 kW battery, 5 AC chargers, 23 bi-directional chargers, and a 150 kW fast charger. This intelligent software has allowed us to achieve days where we were completely independent from the grid and operating 100% on renewable energy. This is not only a great way to reduce our internal emissions, but it is also a solution we will soon begin to integrate into all of our chargers around the world to help our clients reduce their emissions as well.
Those are great initiatives on emission reduction. Apart from the decarbonization efforts, do you have circularity practices that promote sustainable growth?
Absolutely. Wallbox is committed to embracing circularity initiatives. They mainly focus on the 3 R model of reducing, reusing, or recycling. We strive to minimize waste generation, reuse materials wherever possible, and recycle waste and other components at the end of their life cycle. Practical cases include digitalization of the instruction guides, Cradle-to-Cradle certification in our factory and headquarters, reutilization of main panels for Wallbox event booths, and reduction of excess food in our canteens. By implementing these initiatives, Wallbox aims to maximize resource efficiency and minimize our ecological footprint.
Laura, as green activities are at the core of Wallbox, how does the company align with the EU Taxonomy?
Yes. Wallbox is proudly aligned with the EU Taxonomy, which sets standards for environmentally sustainable economic activities and is an important benchmark for investors. Wallbox activities are considered 100% green eligible by the EU Taxonomy standards. This not only reinforces that we are on the right track, it gives a stamp of confidence to the investor community. As banks and investors look to fund sustainable projects, they're more frequently turning to the EU Taxonomy as a reference for what projects and companies are truly green and which are not. Because Wallbox is 100% aligned with the EU Taxonomy, we have actually already received funding from banks like Santander and CaixaBank for more than EUR 70 million. As money managers and banks dedicate larger positions toward sustainable projects, Wallbox alignment with the EU Taxonomy is definitely a competitive advantage.
Thank you. It's great that we are able to make progress on reducing our environmental impact and focus on circularity, both internally and externally. Could you share more examples and data?
Yes, of course. Let me start with the external impacts Wallbox has created by providing charging solutions for the green transportation. Our chargers are connected to our software back end, myWallbox, which allows us to track the amount of energy charged, and based on the energy mix, we estimate the impact we have with our products. Based on that data, Wallbox customers has, have driven more than 4.9 billion electric kilometers, resulting in 643,000 tons of CO2 avoided through cars charged by Wallbox chargers by the end of Q3, 2023. On the internal emission reductions, Sirius allows us 100% optimization of on-site renewable production, 60% self-sufficiency or grid independence in the first half of 2023, and 40% reduction of monthly energy costs.
By controlling both the solar panels and other distributed energy resources with our energy management software, we can efficiently manage both energy costs and our emissions in real time. Regarding circularity, we have different examples of how our applied model 3 R of reduce, reuse, and recycle. First, we saved about 788 trees by digitalizing our product guides. Second, we have saved 2,280 kilos of waste with our award-winning reusable booths instead of using single-use booths for each fair. Third, we have implemented our Tupper-A way program to avoid food waste. Lastly, on the Cradle-to-Cradle Certification, all materials used in the factory and in our headquarters can be recycled to the molecular part and then reuse the materials for other purposes.
Great. Those are very clear examples of the progress the company is making. Now, I would like to move to a new topic and discuss how Wallbox runs social initiatives. To start off with an important stakeholder, how does Wallbox prioritize quality employment within their organization?
Wallbox places a great importance on providing quality employment opportunities. We foster a positive and inclusive work environment, emphasizing employee well-being and professional growth. The company recognizes that people are the cornerstone, creating the growth and success of the Wallbox journey. To define our culture, we have developed the concept "Dare, Drive, Different" to give employees a framework on how to contribute to our shared success. With Wallbox Voice, an internal survey that we send out to employees quarterly to gauge engagement, motivation, and connectedness, we emphasize the importance of communication with the employees and demonstrate our commitment to high employee engagement. Finally, by offering competitive compensation, benefits, and career development opportunities, Wallbox attracts and retains talented individuals.
We have restricted stock units and employee stock purchase plan programs in place to have employees benefit from the future growth of the company. Through our commitment to quality employment, Wallbox aims to create a fulfilling and rewarding workplace.
What measures does Wallbox take to promote diversity and inclusion?
Wallbox recognizes that diversity and inclusion are essential for innovation and success. We actively promote diversity across our organization, fostering an inclusive culture where individuals from diverse backgrounds can thrive. Currently, around a quarter of our employees are women, and we are working to improve this number. However, we have a wide range of young and also experienced employees, and more than 50 different nationalities. Through initiatives and dedicated programs, Wallbox aims to ensure that every employee feels valued and included as a Wallboxer. To improve diversity and inclusion, Wallbox developed a 3-goal plan, which is focused on achieving a better gender balance, ensuring a respectful culture and environment, and empowering female talent. Examples include increasing the percentage of female applications, and She Drives and She Connects events, where people come together to improve engagement and gender equality.
Referring to your earlier point related to quality employment, how does Wallbox prioritize the training and development of their employees?
Wallbox places a strong emphasis on the training and development of their employees. We invest in ongoing learning opportunities to enhance skills and knowledge, whether it's through internal training programs, workshops, or professional development resources. Wallbox supports their employees' growth and career advancement. By empowering our workforce through continuous learning, Wallbox improves our organization capabilities and fosters a culture of excellence.
Okay, very good. Now, moving towards the suppliers of Wallbox, how does Wallbox ensure supply chain transparency?
Yes, great question. So Wallbox is dedicated to ensuring supply chain transparency, working closely with our suppliers to uphold high standards. We strive to ensure that our supply chain aligns with our values, including fair labor practices, ethical sourcing, and responsible environmental practices. To streamline this process, Wallbox is developing an onboarding manual and internal tool to review and vet its suppliers. With 65% of our suppliers being regional, we have created a very localized supply chain. Therefore, we're able to create jobs and impact for the local community, and also ensure we are minimizing our carbon emissions. But not only we're ensuring that we're minimizing our carbon emissions and reducing internal transportation. A good example of how Wallbox is taking more control in its supply chain is the acquisition of the Spanish company, Ares, last year.
This company was one of the Wallbox most important suppliers, providing the crucial PCB component for our chargers. Ares is located close to our main factory, E26, in Barcelona, and this acquisition allowed us to be even more vertically integrated from a manufacturing perspective, giving us more control over the product quality and improved gross margins. From an ESG perspective, we are now able to extend many of these best practices that we have developed in-house to their teams as well.
Perfect. Now, moving on to your impact on local communities, what type of initiatives do you have?
We recognize the importance of positively impacting the local community. Yes. First, Wallbox is a leading example of a new technology company creating job opportunities in different regions. We actively engage with and support local communities through various initiatives. Based on a clearly defined strategy on where we want to invest in, and that is matching our values, we have selected dedicated economic and social development programs. Examples include Aura or Aura Foundation, which promotes social and work inclusion, Global Humanitaria to support refugee families from Ukraine, and Banc dels Aliments de Barcelona, which helps avoid waste by recovering food and delivering it to people in need.
Also, with Wallbox being the first Spanish unicorn that is listed on the New York Stock Exchange, the company is seen as an example in the local start-up community and providing inspiration for new clean tech companies to emerge. By fostering strong community ties, Wallbox aims to create a positive impact beyond its own organization.
Thank you, Laura. It's great to see the impact on the local community. How does this turn into Wallbox commitment to human rights?
Wallbox is a proud member of the UN Global Compact, demonstrating our commitment to uphold human rights. As a member, we adhere to the 10 principles of the Global Compact, which cover areas such as human rights, labor rights, environmental protection, and anti-corruption. Wallbox integrates these principles into their policies and practices, ensuring respect for human rights throughout our operations. Moreover, we periodically evaluate the different areas where we have business relationships to understand if there are any potential regions where human rights could be violated.
The last topic that we want to cover are the governance activities. How does Wallbox ensure a strong governance through their board of directors?
Wallbox maintains a strong governance structure through their board of directors. Composed of experienced professionals, the board provides strategic oversight, guidance, and accountability. The board has a diverse background of age, nationality, experience, and industry expertise. The board is composed of different committees, and the nominating and corporate governance committee represents the ultimate responsible entity body for ESG matters. The board also plays an important role in providing guidance to the management team and the entire company.
Okay, that's great. How does the management team handle Wallbox governance initiatives within the company?
The management team at Wallbox plays a pivotal role in translating the company's mission, vision, and strategy into action. The way management portrays their vision is leading by example, transparent communication, and fostering a culture of responsible governance throughout the organization. Clear examples are the implementation of the OKRs or objectives and key results system, which breaks down the CEO's main objectives into smaller objectives among the company. Besides, Wallbox management meetings and monthly operational reviews ensure goals and execution are transparently aligned. Finally, monthly all-hands meetings, all employees will be updated on the most important developments within the company. By upholding ethical conduct, transparency, and accountability, the management team reinforces Wallbox's commitment to ESG principles in all aspects of their operations.
Thank you, Laura. My understanding is that Wallbox has different policies in place regarding ESG and human rights policies. Could you tell us more about what type of policies these are?
Last year, Wallbox developed a comprehensive ESG policy that guides their commitments to ensure environmental, social, and governance factors. This policy serves as a framework for decision making, outlining the company's values, principles, and expectations. It reinforces Wallbox's commitment to sustainable practices, ensuring that their business operations align with the highest standards of integrity and responsibility. Besides, we have implemented a human rights policy, where we have all employees committing to the same company standards and ethics. Also, we updated our code of ethics, which includes new ESG content. These are either new or updated policies, which comes on top of the policies we already have in place, such as environmental policy, whistleblower policy, among others.
How does Wallbox manage risks and identify opportunities through their governance framework?
Wallbox recognizes the importance of managing risks and identifying opportunities within their operations. Through rigorous risk and opportunity analysis, we evaluate potential environmental, social, and governance risks that may impact the company. Currently, the ESG department is working on a more detailed framework and risk metrics to align with the new climate risk regulation of the SEC. Also, we are preparing the organization to be able to comply with the upcoming EU Corporate Sustainability Reporting Directive, or CSRD, which will make it mandatory to report according to the European Sustainability Reporting Standards. As of now, Wallbox is already complying with the EU reporting regulation, NFRD, and that's why we annually release, audit, and publish on our website the ESG non-financial report.
The new regulation will be an extension of the old one, for example, in terms of risk reporting, double materiality, and emissions reporting.
Thank you, Laura. Those are very valuable insights, which give a good understanding of ESG at Wallbox and the transformative power of sustainable transport. As a final question, what is next for the ESG department? What are the main short and long-term objectives?
In the years ahead, you can anticipate Wallbox to uphold and expand upon its dedication to ESG principles. Our commitment runs deep across the organization, and we are driven to make a lasting impact to a more sustainable future, both internally and externally. On the environment, we will continue to develop leading charging and energy solutions to support electric transport and motivate our customers to reduce their emissions during their travels and at home. As a company, we focus first on finalizing our emissions assessment before starting with more and more emission reduction initiatives on top of the current activities we mentioned today. In parallel, we continue to review initiatives to reduce waste and increase recyclability and reusability. On the social side, we're working on implementing the initiatives and ensuring these become part of the day-to-day internal culture and operations.
Certain items, such as the Wallbox Voice, community initiatives, social programs, are already in place, but other items, such as the D&I plan and the supplier onboarding program, need to be rolled out across the organization. Lastly, on the governance side, we are happy with the latest development on aligning company goals with transparent communication across the organization, including the setup of different policies and strategies such as the ESG policy, human rights policy, and our Code of Conduct. But we still need to make progress to track and ensure these policies are consistently upheld in every part of Wallbox. We therefore embrace the EU Corporate Sustainability Reporting Directive, which will guide the organization to a position where we assess, track, and report on all relevant sustainability disclosure requirements.
All of these will improve existing efforts of management and the whole organization to reinforce and execute the ESG material principles we strongly believe in. We are an ambitious company that has the goal to make a lasting impact on the world. Therefore, we continue to strive for improvement, but also recognize that there are many goals still to accomplish. Currently, we prioritize where we can have the most impact. The entire company, from management to every other stakeholder, recognizes that if we want to change the world with our products, the organization setup should fit that ambition accordingly. We work hard every day to make that happen.
That was great, Laura. Thank you so much for your time today and for providing insight on what you are working on. We hope this was informative for our audience and want to thank you for your time as well. For any additional information, you can go to the ESG section of our website at wallbox.com, where you can find our latest ESG report. We look forward to next year's conversation to show how we are progressing with our goals. If in the meantime there are any questions, please do not hesitate to reach Laura or myself.