Better Health for All

Gentherm's medical segment, which includes patient temperature management systems, generated $49.8 million in revenue in 2024, representing approximately 3.4% of the company's total product revenue of $1,456.1 million.

These medical products are designed to prevent surgical hypothermia and improve patient outcomes. The majority of the company's revenue comes from automotive products, which are generally health-neutral. The company does not generate revenue from products with direct negative health outcomes. Gentherm's net research and development expenses were $88.7 million in 2024, but no specific percentage of this R&D budget is allocated to health improvement. The company acknowledges privacy, data security, and data protection risks related to its business operations and is subject to various data privacy laws, but no specific data on health data breaches or protection measures is provided.

Fair Money & Economic Opportunity

Gentherm Incorporated is a thermal management technology company, primarily serving the automotive, medical, industrial, and consumer product markets.

It is not a financial institution and does not offer lending, deposit, or other consumer financial services. The company does not generate or manage customer finance data, nor is it regulated as a lender. There is no evidence of revenue from high-cost financial products, nor any data on customer credit scores, savings growth, or debt-to-income ratios. While the company engages in internal diversity and inclusion efforts, community outreach, and employee education programs, these do not constitute financial inclusion initiatives as defined by the rubric.

Fair Pay & Worker Respect

Gentherm's CEO to median employee pay ratio was 696:1 in 2024, with a median employee compensation of $9,078.

Approximately 35% of the workforce was covered by collective bargaining agreements or works councils in 2024. The company reported a Lost Time Case Rate (LTCR) of 0.10 in 2024, which is significantly below the industry benchmark of 0.8. A global pay equity study found minimal pay gaps between groups of employees. The global employee engagement survey in November 2023 had an 89% response rate, with 86% of employees expressing an intent to stay with the company. The company reported zero fines or violations in the past two years.

Fair Trade & Ethical Sourcing

For detected defective products, suppliers are required to confirm receipt of a complaint and immediate measures within one working day, and submit an 8D-Report with corrective actions within 10 working days.

Gentherm's Global Human Rights Policy, updated in 2023, clearly states expectations for suppliers to align with its principles, and its Supplier Code of Conduct and Supplier Requirements Manual provide guidance. Gentherm conducts annual due diligence on the source and chain of custody of tantalum, tin, tungsten, and gold (3TG) to comply with U.S. Securities and Exchange Commission rules. Gentherm's purchasing team tracks and monitors its minority supplier spend, but the percentage of procurement budget directed to local, indigenous, or minority suppliers is not specified, only that it is tracked.

Honest & Fair Business

Gentherm maintains a global, externally hosted ethics hotline for anonymous reporting 24/7 via web and telephone, with a policy prohibiting retaliation against good-faith reporters.

However, the program's effectiveness is not publicly measured. The company has had zero financial restatements in the past five years. The board has 8 independent directors out of 9, which is approximately 89% conflict-free. Gentherm has a zero-tolerance anti-bribery and anti-corruption policy, with annual training and risk assessments, and includes third-party due diligence. However, only approximately 50% of ethical claims are independently verified with a standardized scope.

Kind to Animals

Gentherm's Global Environmental, Health and Safety Policy, revised in May 2025, states that processes should consider animal welfare when applicable and feasible.

The company's Supplier Code of Conduct, updated in January 2026, also notes that processes should consider animal welfare, among other environmental factors. Gentherm is a member of several industry groups, including the Automotive Industry Action Group (AIAG) and the Original Equipment Suppliers Association (OESA), with annual fees totaling approximately $50,000. However, the company explicitly states it does not donate to or use company funds for political purposes, nor does it participate in or directly support political lobbying.

No War, No Weapons

Gentherm states it does not participate in or provide direct support or funding for political lobbying.

The company's Supplier Code of Conduct, revised January 2026, aligns with the UN Guiding Principles on Business and Human Rights (UNGPs) and requires suppliers to conduct due diligence consistent with the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (CAHRAs). Suppliers must use smelters validated as conformant to an independent, OECD-aligned program. However, a 2020 report indicated that only 30% of identified smelters were conformant. Gentherm's Human Rights Policy, revised June 2023, aligns with the UNGPs and is included in its annual Global Conflict of Interest & Business Conduct Assessment survey for salaried employees. The company's ethical red lines, codified in its Human Rights Policy, prohibit forced labor and child labor (under 15 years old or local legal minimum). A Supplier Audit program reviews new and existing vendors over a range of criteria.

Planet-Friendly Business

Gentherm reported total Scope 1, 2, and 3 emissions of 2.09 million tCO₂e in 2022.

The company achieved a 22.1% reduction in Scope 1 and 2 emissions from 2023 to 2024, reaching 25,756 MT in 2024. Gentherm has a goal to reduce Scope 1 and 2 emissions by 59% by 2035, which was developed to align with SBTi guidance, but it is not explicitly stated as validated. In 2024, 38.7% of operational energy consumption was sourced from renewables, and seven sites achieved 100% renewable electricity usage. Water usage per $1 million revenue was 122.3 m³ in 2024. The waste diversion rate from landfill was 81.1% in 2024 (18.9% to landfill). The company began conducting carbon footprint calculations for products in 2023, with over 100 calculations in 2024. Approximately 22% of Gentherm’s global water usage in 2024 came from Mexico, which is classified as a “High Water Stress” region. The company reviews climate-related risks in line with TCFD and performs detailed risk analysis as part of its CDP submission, including academic studies on climate impacts. Biodiversity efforts include local tree planting and reforestation programs in Mexico and Vietnam. Gentherm recently issued a Responsible Sourcing Policy for Minerals and Other Raw Materials and completed a CDP Forests submission. A supplier sustainability survey was launched to a select group of vendors in late 2024.

Respect for Cultures & Communities

Gentherm reports no cultural appropriation incidents.

The company maintains a global, externally hosted ethics hotline, available 24/7 to employees, suppliers, customers, and the general public, allowing anonymous reporting of concerns. Gentherm's updated Global Human Rights Policy states support for the rights of indigenous peoples, and the company relies on the EICC/GeSI Conflict-Free Sourcing Program audits for due diligence, but no specific data on affected communities participating in FPIC processes is provided. In 2023, Unconscious Bias and "Elevate the Dialogue" trainings were delivered to nearly 80% of global leaders. The company supports STEM education, local charities, and COVID-19 efforts, with community involvement varying by site based on local needs and culture, but no specific percentage of revenue donated to cultural heritage organizations is provided.

Safe & Smart Tech

Gentherm reported zero known security breaches in 2024, 2023, and 2022.

In 2023, the company experienced cybersecurity incident attempts, but none were material. For employee security training, employees completed over 8,000 cybersecurity training modules in 2021 and 2022, and over 6,200 sessions in 2023. Assuming one module per employee, this represents approximately 55% of the 14,504 employees in 2023. The company states it complies with data protection laws and regulations, including GDPR, and aligns its sustainability and environmental reporting with CDP, SASB, and UN Sustainable Development Goals. It also engaged expert resources to align with the EU’s Corporate Sustainability Reporting Directive (CSRD).

Zero Waste & Sustainable Products

In 2024, Gentherm reduced waste to landfill from 26% to 19% of total solid waste, indicating an 81% waste diversion rate.

The company has a long-term target of zero waste and met its seven-year environmental targets for waste to recycling, hazardous waste, and water usage several years early. Hazardous waste represented approximately 0.7% of total solid waste in 2023 and 2024. Gentherm has implemented numerous waste reduction initiatives, including 49 continuous improvement projects at its Ha Nam, Vietnam site, which reduced scrap waste by approximately 15% from the previous year. The company's Supplier Requirements Manual encourages partners to measure and report emissions, achieve ISO-14001 certification, and track water usage and waste generation. Gentherm also engages in customer and community education, such as participating in a local training program on climate change awareness in Celaya, Mexico, and organizing "Battery Collection Days" in Vietnam. The mechanical structuring process for Cell Connecting Boards (CCB) results in approximately 91-98% reduction in water consumption compared to traditional manufacturing processes.