Gentex : 2024 Sustainability Report, Covering FY 2023

GENTEX SUSTAINABILITY REPORT

COVERING FISCAL

YEAR 2023

TABLE OF CONTENTS

INTRODUCTION

Letter from Scott Ryan	4
Corporate Profile	5
2023 Highlights	6
Our Approach	7

CARBON NEUTRALITY

Energy and Carbon Neutrality	8
Greenhouse Gas Emissions	10
Environmental
Management System (GEMS)	12
Electricity Use
Process Water Use
Natural Gas Use
VOC Air Emissions
Waste and Recycling	14
Solid Waste to Landfill
Solid Waste Recycled
Regulated Waste

SUSTAINABILITY INITIATIVES

Energy	17
Waste Stewardship	17
James Street	18
Water Management	19
Environmental	20
Transportation	21

GOVERNANCE

EcoVadis	22
Cybersecurity	24
Product Quality	26
Board Oversight	28
Grievance Reporting	29

SOCIAL RESPONSIBILITY

Diversity	30
Message From Joe Matthews
Supplier Diversity
Supporting Diversity
Diversity, Equity, and Inclusion
Business Resource Groups
Talent Development
Health & Wellness	38
Health Programs
Gentex Wellness Center
Safety And Injury Prevention
Gentex Electronic Recycling Event
Community Service	42
Foundation
Amanda Clark Scholarship
Community Share
Hardship Fund
APPENDIX
Corporate Governance	46
Code of Business
Conduct And Ethics	48
Incentive-Based Compensation
Recoupment Policy	51
Employee Safety	53
Product Safety and Regulatory Compliance
Supplier Quality Awards	54
Gentex EEO Policy
Conflict Minerals
Anti-Retaliation
Anti-Harassment and Discrimination
Human Rights Policy and
Basic Working Conditions	55
Substances of Concern (SOC)
& End-of-Life Vehicles	56
Safe Harbor for Forward-Looking Statements
ISO 45001 Certification	57
ISO 14001 Certification	58

LETTER FROM SCOTT RYAN

Gentex is focused on investing in environmental, sustainability and diversity efforts that have long-term benefits.

In 2023, we furthered our work with EcoVadis, a global Corporate Social Responsibility (CSR) rating company based on international standards. We began reaching out to our supply chain, asking them to engage in the EcoVadis platform so that we can identify their progress toward sustainable targets. Over the coming years, we will add this information to our own data to provide shareholders with increased visibility of our performance and impact within our communities, and a more complete picture of our Scope 3 emissions. These metrics will focus on our impact with regard to our environment, our labor and human rights initiatives, the ethics which guide our decision making, and our procurement processes. Among other things, this reporting will allow us to work with our suppliers to identify and track our Scope 3 emissions, update our internal and external guidelines and reporting for social progress, and more accurately compare our progress to that of

our peer group.

Gentex has always been more interested in progress than in promotion, but as more investors seek to align their portfolios toward social progress, we recognize the need to showcase our good work. To that end, we continue to update our sustainability report each year, and we've also begun adding clarifying documents to assist our shareholders in analyzing our performance and stance on social issues.

Vice President, General Counsel, Corporate Secretary, & Sustainability Officer

KEEP UP-TO-DATE ON OUR

ESG DOCUMENTS AND MORE

SCAN TO VISIT OUR WEBSITE

INTRODUCTION

CORPORATE PROFILE

Gentex - Today's Features, Tomorrow's Technology

Gentex supplies nearly every major automaker with advanced electronic features that optimize driver vision and enhance driving safety.

We also manufacture alarms and signaling devices for the commercial fire protection industry and electrochemically dimmable windows for the aerospace industry. We have focused competency in digital vision, automotive connectivity, dimmable glass systems, and sensing. Since our inception, Gentex has managed the evolution of rear vision. We use the mirror (and surrounding windscreen) as a strategic electronic module - a delivery mechanism for advanced vision-related features, including cameras, displays, alerts, transaction modules, car-to-home automation systems, and security components. Products for today based on tomorrow's emerging technology. For more information on Gentex and its products visit: gentex.com or gentextech.com

 ESTABLISHED 1974

6,245Full-time

Employees

OPERATIONS/	SALES/LOGISTICS/ENGINEERING
HEADQUARTERS	United States, China, France, Germany, Israel, Japan,
Zeeland, MI	South Korea, Sweden, United Kingdom

SUPPLY SMART-MIRRORS		36+	660+
AND RELATED CONTENT
AROUND THE WORLD:
		OEM Customers Shipped To
89%					Nameplates Our Content Appears On
	SALES (2023)	$2.3B
Market share of interior
auto dimming mirrors	50.6M
		Mirrors shipped
(IEC)	(2023)

4	2023 Gentex Corporation	SUSTAINABILITY REPORT	INTRODUCTION	+ Climate Change +	Sustainability Initiatives +	Governance +	Social Responsibility +	Appendix	5

2023 HIGHLIGHTS

					OUR APPROACH
					Gentex is committed to reducing negative environmental impacts resulting from
					operations and protecting all stakeholders by achieving environmental, social and
					corporate governance goals. We continue to strive for improvements in our environmental
					performance by seeking out smarter ways to minimize waste and prevent pollution.
					With respect to minimizing waste and preventing pollution, priority is given to those
Supporting the growth of EVs: Gentex has 37 charging stations		Energy Purchase: 2023 was our first full year utilizing renewable			opportunities that offer the greatest anticipated practical benefit while striving for continual
globally for our employees with electric vehicles.		energy at our James Street location. This energy, through a purchase			improvement. Accordingly, objectives and targets are established and periodically reviewed so
		agreement with our local energy company, comes from renewable			as to minimize, to the extent practical, the creation of waste, pollution and adverse impacts on
		sources rather than mainstream electrical production.			the environment associated with company activities, products or services.
					Protection of health and the environment is a company-wide responsibility. Management
					of each business area is expected to support our environmental management system and
					commit the necessary resources. Team members at all levels are expected to carry out their
					responsibilities as established by our environmental management system and to cooperate in
					company efforts.

Glass Recycling: With new updates to our manufacturing and reclamation processes, we have worked to expand our ability to recycle glass that is further along in production. This will allow Gentex to recycle more glass with some amount of epoxy, chemistry, and/or hardware associated with it, rather than having to send it to the landfill.

Safely Packaged: Through a partnership with Goodwill Industries of West Michigan, a reseller of used clothes, home goods and other items, Gentex is donating 12 gaylords of once-used bubble wrap and packaging materials every other week, approximately 14,000 lbs annually. This recycled packaging is used by their ecommerce team for outbound orders. Each gaylord is approximately 48" x 40" x 36".

• CLIMATE CHANGE
• SUSTAINABILITY INITIATIVES
• GOVERNANCE
• SOCIAL RESPONSIBILITY

6	2023 Gentex Corporation	SUSTAINABILITY REPORT	INTRODUCTION	+ Climate Change +	Sustainability Initiatives +	Governance +	Social Responsibility +	Appendix	7

CARBON NEUTRALITY

ENERGY & CARBON NEUTRALITY

Gentex is committed to achieving carbon neutrality by at least 2049.

Gentex remains committed to improving energy-efficiency where practical. Our team stays current on efficient alternatives for equipment as they are developed and introduced to the industry.

In the past, we have utilized such alternatives for equipment replacement and for new equipment installations. We are currently working to use less energy in the operation of our manufacturing plants through automated building management systems and by utilizing the most energy efficient lights and HVAC equipment. With this change, we maintain our commitment to carbon neutrality by 2049.

Renewable Energy

Gentex participates in the local Energy Smart Program (ESP), which promotes the implementation of progressive energy efficiency projects. Continually optimizing energy use has allowed associated rebate earnings above and beyond the previously identified program cap. Projects implemented in support of this program include lighting and HVAC improvements, conducting compressed air leak audits, and installing new building control systems.

Additional information can be found at: zeelandbpw.com/resources/reports-news/energy-waste-reduction-and-renewable-energy-plan-summary-report/

8

2023 Gentex Corporation

SUSTAINABILITY REPORT

Introduction + CLIMATE CHANGE

+

Sustainability Initiatives +

Governance +

Social Responsibility +

Appendix

9

GREENHOUSE GAS EMISSIONS GREENHOUSE GAS EMISSIONS

With continuous improvement and optimum accuracy in mind, we have progressed through a gap analysis since the 2021 Sustainability Report.

The operational control approach was used for establishing the organizational boundary. For consistency, we'll begin tracking not only Scope 1 and

Scope 2 metrics for these locations for our base year moving forward, but also the other tracked data (waste, water, etc.).

Now that we have confirmed status of elective renewable energy investments throughout the company, the 2023 report marks the first year that Scope 2 market based emissions are included. This highlights the investments that have been made toward increasing renewable electricity use and the positive impact it has on emissions.

Gentex reports on two types of location-based greenhouse gas emissions:

Innovation is an embedded discipline at Gentex. We continually reinvent every aspect of the business - from products and processes to the technology we deploy. Sustainability plays a critical role in our development. Over the years, Gentex has meticulously infused sustainable practices into every aspect of our operations to help reduce our carbon footprint. Gentex monitors carbon emissions from our global operations, which helps us measure performance and locate inefficiencies.

The Science Based Targets initiative (SBTi) drives ambitious climate action in the private sector by enabling organizations to set science-based emissions reduction targets. Gentex is working on its SBTi submission, which includes the start of gathering emissions data from our supply base.

Due to the disruptions caused by the COVID-19 pandemic in 2020, Gentex is shifting to 2021 as a more reliable baseline for evaluating performance and planning future sustainability strategies.

Factors such as reduced car usage, slowed manufacturing, and widespread economic impacts made 2020 an inaccurate representation of typical operations.

Carbon Reduction & Neutrality Goals

2026

15% below 2021 levels

2031

40% below 2021 levels

2041

70% below 2021 levels

2049

Carbon Neutral

SCOPE 1	Gentex remains below federal reporting thresholds for Scope 1 emissions.										Scope 1 Emissions
																																	Emissions Gentex directly controls
		stationary combustion																						+
																								combustion of natural gas for
2023
		10,328
																																boilers/heating and manufacturing
2022
		10,276
																																processes, fuel consumed for
2021
		8,879																													metric tons		transportation, and refrigerant loss etc.
			8,500	9,000	9,500				10,000	10,500
			company vehicles
2023
		1,333
2022
		1,386
2021
		1,015																													metric tons
			1,000	1,100	1,200				1,300	1,400
			fugitive emissions
2023
		90
2022
		69
2021
		125																													metric tons
			50	100	150				200		250
SCOPE 2
purchased electricity and steam - location based																						Scope 2 Emissions
2023
		104,997																									+	Emissions from electricity
2022
		96,054
																																and steam we purchase.
2021
		94,302																													metric tons
			70,000	80,000	90,000				100,000	110,000
purchased electricity and steam - market based
2023
		99,614
2022
		93,125
2021
		94,302																													metric tons
			70,000	80,000	90,000				100,000	110,000

10	2023 Gentex Corporation	SUSTAINABILITY REPORT	Introduction + CLIMATE CHANGE	+	Sustainability Initiatives +	Governance +	Social Responsibility +	Appendix	11

GENTEX ENVIRONMENTAL MANAGEMENT SYSTEM (GEMS)

To advance our environmental performance, Gentex established an environmental management system based on the ISO 14001 international environmental management standard. Gentex has maintained ISO 14001 certification since 2002 and continues to renew that certification. The ISO 14001 international environmental standard became the foundation for the Gentex Environmental Management System and interconnects with our Environmental Policy, allowing us to integrate environmental efficiency into our processes.

At all facilities, environmental impact is being measured and improved annually by eliminating waste and emissions, maximizing the efficiency of our processes and resources, and increasing recycling and reuse. By ensuring environmental management and conservation, we have been able to establish long-term measures for minimizing

2023 GEMS Goals

Reduce Plastic Trays

GOAL: Reduce the number of plastic trays used in chemical production.

TARGET: Use 10,000 fewer plastic trays.

REALIZATION: Reused 10,000 plastic trays.

Renewable Energy Use

GOAL: Work towards long-term sustainability goals by increasing renewable energy use.

TARGET: Increase renewable energy use by 2% (3 million kWh).

REALIZATION: Increased renewable energy use by 2.97%.

Recycle Safety Glasses

On the pages that follow, we provide an overview of the various metrics we track to gauge the environmental performance of our manufacturing facilities.

To help qualify these figures and provide a frame of reference, most of the metrics are expressed as a measure of revenue.

ELECTRICITY USE		annual total (kWh)		kWh/$
Electricity consumed to support	2023
189,190,338	0.082
office areas as well as operate	2022
173,157,059	0.090
Gentex's manufacturing, machinery	2021
170,102,869	0.098
and equipment.
																				lbs/$
		0.080	0.085	0.090	0.095
			0.100

negative effects on the environment while maximizing positive outputs for our surrounding communities.

GOAL: Set up collection containers and recycle used safety glasses.

TARGET: Recycle 500 lbs (approx. 13,525 pairs) of glasses.

REALIZATION: 394 lbs. of safety glasses recycled (~10,654 pairs).

Precious Metals Recovery

GOAL: Recover ruthenium from sandblasting operations.

TARGET: 700 troy ounces of ruthenium recovered.

PROCESS WATER USE

Process water use consists of the water used during production, primarily in glass washing operations. It also includes water for sanitary use.

	annual total (gal)		gal/$
2023
230,005,489	0.100
2022
209,074,748	0.108
2021
201,420,211	0.116

																	lbs/$
0.100	0.105	0.110	0.115	0.120	0.125

REALIZATION: 247 troy ounces of ruthenium recovered.

2024 GEMS Goal

Recycle Glass

GOAL: Glass Recycle.

TARGET: Recycle an additional 4 million pounds of glass in 2024 than in 2023.

NATURAL GAS USE		annual total (ft3)		ft3/$
Natural gas consumed	2023
192,286,163	0.084
primarily to heat facilities.	2022
188,748,831	0.098
	2021
	163,102,442	0.094

														lbs/$
0.060	0.070	0.080	0.09	0.10

revenue

2023 2,299,215,044

2022 1,918,958,043

2021 1,731,169,929

2020 1,688,189,405

$1.6B

$1.8B

$2.0B

$2.2B

$2.4B

$2.6B

VOC AIR EMISSIONS

Volatile organic compounds used

in Gentex operations include solvents, adhesives and chemical compounds used in the formulation of chemical subassemblies.

	annual total (lbs)		lbs/$
2023
210,339	0.000092
2022
173,769	0.000090
2021
164,563	0.000095

														lbs/$
0.000050	0.000065	0.000080	0.000095	0.000110

12

2023 Gentex Corporation SUSTAINABILITY REPORT

WASTE AND RECYCLING

Gentex is a leading supplier of digital vision, connected car, dimmable glass, and fire protection technologies. Over the years, Gentex has systematically transformed itself into a technology company that is vertically integrated and proficient in a wide range of unique core competencies. This requires sophisticated manufacturing processes that promote efficiency and minimize waste to leverage quality and drive innovation.

2023 Solid Waste Recycled

Gentex is currently recycling more solid					Recycled:					Disposed of:
waste than it sends to the landfill.
	68.07%	31.93%
SOLID WASTE TO
LANDFILL		annual total (lbs)		lbs/$
Solid waste sent to the landfill comes	2023
15,318,189	0.0067
primarily from general manufacturing	2022
12,711,704	0.0067
and office trash.	2021
12,099,440	0.0069
																	lbs/$
			0.0050	0.0060	0.0070	0.0080	0.0090

Waste Stewardship

Minimizing waste and increasing recycling and reuse is fundamental to the way we operate. From general office materials to manufacturing materials on the production floor, our team stays diligent on minimizing waste wherever practical. This company-wide initiative allows us to gather unique insight into our processes at every level from the very people who are a part of it every single day.

Recycling

Gentex has a robust recycling strategy in place to prevent scrap commodities from ending up in the landfill and we continue to explore new strategies to increase our recycling and reuse. We have invested substantial time and money into developing our manufacturing process to monitor and minimize waste while promoting recycling.

Landfill Avoidance Goals

2026

20% below 2021 levels

2031

60% below 2021 levels

SOLID WASTE RECYCLED

Gentex attempts to recycle as much solid waste as possible, which consists primarily of glass, plastic, cardboard and paper scraps from manufacturing operations and general U.S. office use.

	annual total (lbs)		lbs/$
2023
34,506,484	0.0150
2022
27,539,188	0.0144
2021
25,096,576	0.0145

														lbs/$
0.0110	0.0120	0.0130	0.0140	0.0150

Some examples of longstanding recycling and reused resources include:

+	Pallet recycling	+	Glass recycling
+	Battery recycling	+	Crate recycling

• Gentex started reusing packaging through a partnership with Goodwill Industries of West Michigan, a reseller of used clothes, home goods and other items, Gentex is donating 12 gaylords of once-used bubble wrap and packaging materials every other week, approximately 14,000 lbs annually. This recycled packaging is used by their ecommerce team for outbound orders. Each gaylord is approximately 48" x 40" x 36".
• In 2023, 8,896 pounds of cut resistance and inspection gloves were laundered for reuse in Gentex facilities.

Due to the disruptions caused by the COVID-19 pandemic in 2020, Gentex is shifting to 2021 as a more reliable baseline for evaluating performance and planning future sustainability strategies.

Factors such as reduced car usage, slowed manufacturing, and widespread economic impacts made 2020 an inaccurate representation of typical operations.

2041

90% below 2021 levels

2045

100% recyclable Zero landfill waste

All of these waste materials are handled and disposed of by the appropriate treatment storage and disposal facility.

REGULATED WASTE		annual total (lbs)		lbs/$
Regulated waste consists primarily of	2023
864,553	0.000376
hazardous materials, including liquid	2022
684,361	0.000357
industrial waste, used oil and	2021
577,665	0.000334
universal waste.
																							lbs/$
		0.000300	0.000325	0.000350	0.000375
			0.000400

14	2023 Gentex Corporation	SUSTAINABILITY REPORT	Introduction + CLIMATE CHANGE	+	Sustainability Initiatives +	Governance +	Social Responsibility +	Appendix	15

SUSTAINABILITY INITIATIVES

As Gentex progresses along the sustainability path, United Nations Sustainable Development goals are used as guidance along with other similar organizations.

Our ongoing sustainability initiatives not only help facilitate innovation and serve as tools to measure our environmental performance, but also serve as our guide as we transition toward carbon neutrality, helping us focus on energy efficiency, waste stewardship, water management, company transportation, environmental efforts and more.

Additionally, our sustainability initiatives play a crucial role in new construction. As the company continues to grow, environmental impact and efficiency are thoroughly considered before breaking ground on any new construction on our campuses. And as our product portfolio grows and diversifies, our team is committed to developing new and unique sustainability solutions.

WASTE STEWARDSHIP

• Facility carpets have 30 - 50% recycled content and are 100% recyclable.
• Gentex installed drinking fountains at multiple facilities that have a water bottle refill feature that helps avoid the disposal of hundreds of thousands of plastic one-time use water bottles each year.
• Clean scrap glass from coating, bending and final assembly mirror lines is processed for recycling into insulation.

ENERGY

• Gentex completed the transition to 100% renewable energy at our James St. manufacturing facility.
• Gentex utilizes software-managed and occupancy-sensor-controlled lighting throughout many of our facilities.
• Air economizers and energy recovery units are integrated into our HVAC systems.
• Energy-efficientfluorescent lights are utilized in most areas. New and renovated areas are moving to LED technology.
• Facility roofs utilize white materials to reflect sunlight and reduce air conditioning energy consumption by approximately 20%.
• Many Gentex utility and HVAC systems are managed by computer-controlled software, allowing for improved performance and energy reduction.
• Gentex facilities utilize an insulated metal panel system for the exterior walls in order to improve energy efficiency.
• Gentex captures the excess heat from the compressed air system and uses it to pre-heat/temper the water used in the production process, thus eliminating the need for auxiliary heaters in the water basins.
• Excess warm water from the production process is used to temper the boiler/snowmelt water, reducing boiler energy consumption.
• VFDs (variable frequency drives) are installed on all motors and pumps on the Michigan campus.
• A centralized water chiller plant allows us to decrease overall energy usage.

16	2023 Gentex Corporation	SUSTAINABILITY REPORT	Introduction + Climate Change + SUSTAINABILITY INITIATIVES	+	Governance +	Social Responsibility +	Appendix	17

WATER MANAGEMENT

+

+

+

+

+

+

Gentex's water recovery system collects water used in the production lines, sanitizes it, and sends it back for use in a secondary manufacturing process, which helps reduce overall water usage.

A Gentex manufacturing facility expansion utilizes an underground storm water retention system to reduce storm water discharge into the county drain system. All new buildings are constructed with water usage mitigation practices employed.

Our irrigation software control system monitors the weather and climate conditions to optimize watering schedules, reducing irrigation water consumption by approximately 25%.

Low-flow faucets are used within the facilities.

Gentex works to ensure all employees globally have consistent and reliable access to clean drinking water.

Gentex works diligently to ensure that any potential pollutants that could negatively impact the safety of the drinking water in our manufacturing locations are properly disposed of in accordance with all laws and regulations.

JAMES STREET FACILITY - 100% RENEWABLE ENERGY

2023 was Gentex's first full year utilizing renewable energy at its James Street location. This energy, through a purchase agreement with a local energy company, comes from renewable sources rather than mainstream electrical production.

18	2023 Gentex Corporation	SUSTAINABILITY REPORT	Introduction + Climate Change + SUSTAINABILITY INITIATIVES	+	Governance +	Social Responsibility +	Appendix	19