2015 CORPORATE SUSTAINABILITY REPORT - Visteonvisteon.com/company/csr/docs/2015_csr.pdf ·...

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2015 CORPORATE SUSTAINABILITY REPORT

Transcript of 2015 CORPORATE SUSTAINABILITY REPORT - Visteonvisteon.com/company/csr/docs/2015_csr.pdf ·...

2015 CORPORATE SUSTAINABILITY REPORT

OUR COMMITMENT TO SUSTAINABILITY Visteon is driving to be the world’s leading provider of cockpit electronics products for global automakers. While pursuing this goal, we are equally committed to upholding the highest standards of corporate responsibility across the 18 countries where we operate.

This report highlights sustainability activities and performance across Visteon’s global operations in 2015, and outlines our 2016 targets. Visteon achieved 10-year bests in virtually every key sustainability metric in 2015, including employee safety, energy usage, emissions, waste reduction and water conservation – both in raw numbers and also in relation to revenue.

Visteon’s emphasis on employee safety paid off in 2015, as the company recorded its lowest-ever occupational injury rates. Our lost-time case rate of 0.03 placed Visteon within the top 5 percent of all industries – and is considered best-in-class for automotive and manufacturing companies. More than 90 percent of our global facilities had zero lost-time injuries in 2015, as our employees fully embraced a no-injury mindset.

Through corporate contributions and the generosity of our employees, Visteon helps improve the lives of thousands each year. Visteon employees display a caring spirit across all corners of the globe – from getting involved in science, technology, engineering and math education in the U.S.; to raising money and volunteering in support of cancer research in the UK; to donating funds and school supplies for underprivileged students in China; to supporting relief efforts following devastating floods in India.

I am proud that as Visteon has transformed to a global technology leader, the company and our 11,000 employees around the world have remained dedicated to the highest standards of corporate sustainability.

Sincerely,

Sachin LawandePresident and CEO

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CONTENTSIn support of our longstanding commitment to corporate sustainability and citizenship, Visteon Corporation is providing this report as a summary of the company’s 2015 corporate responsibility activities. Included are highlights of initiatives, practices and achievements related to ethics and governance, diversity, environment, health and safety, and community involvement.

Visteon is committed to achieving success and delivering value for customers and shareholders in today's dynamic automotive marketplace. With a strong global manufacturing and engineering footprint, and leading products and processes, Visteon has a world-class workforce and an unwavering commitment to corporate sustainability.

Company Profile 4

Ethics and Governance 5

Diversity 8

Environmental Health and Safety 10

Community 13

GRI Index 19

Targets and Metrics 21

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Note: Visteon sold its ownership interest in HVCC on June 9, 2015.

Visteon designs, engineers and manufactures vehicle cockpit electronics products and connected car solutions that deliver a rich, connected experience for drivers and passengers. As one of the most recognized automotive suppliers in the world, Visteon is technology-driven, flexible and enjoys a diversified customer base and broad global footprint.

COMPANY PROFILE

Vision

Headquarters

President and CEO

2015 Revenue

NYSE Stock Symbol

Core Business

Products

Brands

Customers

Employees

Quality Certification

Website

A top-three cockpit electronics player delivering a rich, connected cockpit experience for every car from luxury to entry.

Van Buren Township, Michigan, U.S.

Sachin Lawande

$3.25 billion

VC

Automotive cockpit electronics

Instrument clusters, head-up displays, information displays, infotainment, connected audio, connectivity and telematics

Lightscape®, OpenAir® and SmartCore™

Ford, Renault/Nissan, Mazda, BMW, GM, Honda, PSA, JLR, VW, Daimler and others

More than 11,000

Visteon Corporation is certified to the ISO/TS16949 TechnicalSpecification for quality management systems. The company requires its supply chain to have third-party certification to ISO/TS 16949 by an IATF-recognized certification body.

www.visteon.com

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ETHICS AND GOVERNANCEVisteon's ethics and compliance program is based on the company’s Ethics and Integrity policy. This policy describes the company's expectations regarding the standards of behavior and conduct of employees. It underscores our dedication, at all levels of the organization, to the behaviors underlying our ethical standards. The policy is translated into 16 languages and distributed to our employees throughout the world. The company also maintains an ethics “hotline” and encourages employees to report any concerns or failures in compliance. Visteon has implemented a process under which employees can bring any concerns regarding matters of ethics and compliance to the direct attention of Visteon's Audit Committee. Through an annual report presented to the Audit Committee, the company describes its activities and compliance within our ethics areas.

Code of Basic Working ConditionsAs an extension of our ethics and compliance program, Visteon adopted its own Code of Basic Working Conditions in 2006. This code sets requirements and expectations related to the following areas:

• Child Labor• Compensation• Forced Labor• Freedom of Association and Collective Bargaining• Harassment and Discrimination• Environment, Health and Safety• Work Hours• Responsibility and Implementation

Visteon is committed to ensuring its suppliers are aligned with the company's ethics and compliance program. Visteon issues to all of its suppliers terms and conditions that include compliance with all applicable laws and regulations, including those relating to environmental matters, wages, working hours, conditions of employment, discrimination, and health and safety. The terms and conditions also require that suppliers attest that any supplies purchased by Visteon will not be produced with forced labor either by the supplier or its suppliers.

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Conflict MineralsOn Aug. 22, 2012, the U.S. Securities and Exchange Commission (SEC) adopted final rules to implement section 1502 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. This law imposes reporting requirements on manufacturers if the products they manufacture or contract to manufacture contain minerals identified as “conflict minerals.” The rules define conflict minerals as cassiterite, columbite-tantalite, wolframite and gold, as well as their derivatives tin, tantalum and tungsten. Other minerals may be identified in the future at the discretion of the U.S. Secretary of State.

To comply with this law, Visteon has imposed standard reporting requirements on its supply chain regardless of where the components and materials are purchased. Visteon has been working closely with the Automotive Industry Action Group (AIAG), and with our customers and other Tier 1 suppliers, to ensure continued consistency in the tools used to establish this process. Requirements are cascaded annually to our supply chain, and Visteon intends to do what we can to ensure the components and materials in our products, regardless of where they are assembled or sold, do not contain conflict minerals that have contributed to the armed conflict in the Democratic Republic of Congo (DRC) and surrounding countries.

Governance – Board of DirectorsThere are currently four Board committees in the Board Committee Structure: Audit; Finance and Corporate Strategy; Corporate Governance and Nominating; and Organization and Compensation.

1. Audit The Audit Committee's purpose shall be to assist the Board of Directors in its oversight of the integrity of the corporation's

financial statements, the corporation's compliance with legal and regulatory requirements, the independent auditors' qualifications and independence, and the performance of the corporation's internal audit function and its independent auditors. The Audit Committee shall be directly responsible for the appointment, compensation, retention and oversight of the work of any independent auditors, and each such auditor shall report directly to the Audit Committee.

2. Finance and Corporate Strategy The purpose of the Finance and Corporate Strategy Committee is to consider and make recommendations to the Board of

Directors regarding issues impacting the financial structure and strategic direction of the corporation, including, but not limited to, revisions to the corporation’s capital structure; mergers, acquisition and divestiture activities; and changes to the scope and mix of business.

3. Corporate Governance and Nominating The purpose of the Corporate Governance and Nominating Committee is to assist the Board in monitoring and developing the

corporation’s corporate governance practices and procedures, identifying qualified individuals to become directors, determining the composition of the Board and its committees, and overseeing risks related to the corporation’s corporate governance structure, practices and procedures.

4. Organization and Compensation The purpose of the Organization and Compensation Committee is to evaluate and review the performance of the executive

personnel of the corporation and to develop and make recommendations to the Board of Directors with respect to executive compensation policies and plans, executive staffing and succession planning, organizational development, and equal opportunity and diversity policies, so as to ensure that senior management is rewarded appropriately for its contributions to the interests of the corporation and its shareholders, and that the corporation maintains the necessary processes to ensure the continuing development of organizational leadership.

Further details on Board committee charters and roles and responsibilities can be found on http://www.visteon.com/investors/govCommComp.html.

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DIVERSITYVisteon places a high value on diversity and everything it embodies. For Visteon, diversity represents an environment of open communication where the contributions of all employees are valued. Visteon believes that a diverse business is built on the foundation of inclusion, respect, acceptance and learning. The attributes that make us unique individuals – culture, ethnicity, race, gender, age, sexual orientation, gender identity and expression, disability, nationality, education, life experience and beliefs – allow us to provide each other with insights that may not otherwise be realized. As a multicultural organization, Visteon embraces human differences and harnesses the power of its employees’ varied backgrounds, cultures and experiences to create a competitive edge.

Visteon's global mission for diversity is to provide a business environment that:

• Maximizes the benefits derived from a diverse workforce• Promotes a culture that encourages every individual to contribute to the success of the business• Values differences in the background and experiences of individuals

There is a strong business case for organizations that appreciate and manage diversity. It is based on demographic changes in the workforce and a global customer base. Additionally, diverse organizations gain the opportunity to benefit from improved talent retention and increased productivity.

We believe that all individuals can benefit by working in a more inclusive environment. Valuing diversity also creates better working relationships with suppliers, customers and communities. Sharing and capitalizing on diverse perspectives generally results in better idea generation, more thoughtful dialogue and, ultimately, premier products.

Visteon will succeed through the full engagement of the diverse talents of all its employees. Visteon's diversity mission is supported by our Employee Resource Groups and a commitment to work-life balance.

EmploymentVisteon embraces an inclusive work environment in which open communication, honest dialogue and the contributions of all employees are valued, and where equal opportunity and non-discrimination are given the highest priority. By valuing diversity, both individuals and the organization are better equipped to meet the challenges presented by global competition.

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ACHIEVEMENTS IN DIVERSITY – 2015Visteon Recognized for Excellence in Workplace Effectiveness and FlexibilityFor the seventh consecutive year and eighth time overall, Visteon received the Alfred P. Sloan Award for Excellence in Workplace Effectiveness and Flexibility for companies in Michigan. In 2015, Visteon was the only automotive-related company among 28 Michigan honorees to receive this prestigious award. As a recipient of the Sloan Award, Visteon ranks in the top 20 percent of employers in the U.S. for programs and policies incorporating effective and flexible workplace practices to achieve business objectives. The Alfred P. Sloan Awards for Excellence in Workplace Effectiveness and Flexibility are part of When Work Works, a national research-based initiative that highlights workplace effectiveness and flexibility. When Work Works is a joint partnership between the Families and Work Institute and the Society of Human Resource Management.

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ENVIRONMENTAL HEALTH AND SAFETY (EH&S)EnvironmentAfter achieving its first emission reduction target of a 20 percent reduction in normalized emissions at the end of 2012, Visteon set another three-year 20 percent reduction target in 2013. In 2015, Visteon greatly exceeded this target, recognizing a 49 percent reduction in normalized emissions in the three-year period. While this reduction was aided by the divestiture of certain facilities that had energy-intensive manufacturing processes, thus removing a significant portion of emissions from Visteon portfolio, the company continues to implement practices that reduce its environmental footprint on a continual basis.

Under a “green plants” initiative, Visteon implemented a number of initiatives to reduce waste, water usage and greenhouse gas emissions at various manufacturing facilities in 2015. These included improving lighting or heating/cooling efficiency at more than a dozen plants, installing a solar photovoltaic system at a facility in China, managing the use of compressed air at several plants; and installing high-efficiency transformers at a facility in Mexico.

Visteon was in full compliance with all customer product-related environmental, health and safety requirements in 2015. Every facility where Visteon has financial control (more than 50 percent ownership) is certified to the ISO14001 environmental standard.Visteon is committed to offering products to automakers that support the goal of reducing vehicle emissions and increasing fuel economy through weight reduction and other approaches. Visteon supports the movement to alternative fuel vehicles and powertrains, with the overall goal of reducing vehicle emissions.

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Health and SafetyVisteon set a new standard for health and safety performance in 2015. The company recorded its lowest-ever injury rates, and more than 90 percent of its facilities recorded zero lost-time accidents.

Visteon outperformed its target for lost-time case rate, achieving a rate of 0.03 – a greater than 50 percent improvement over 2014. This puts Visteon within the top 5 percent of all industries and makes it best-in-class for automotive/manufacturing companies. Visteon also recorded best-ever milestones for severity rate (1.37) and recordable injury rate (0.05) – those work-related injuries that result in medical treatment greater than first aid, or that result in restricted work or lost days. This strengthens Visteon’s position as a safety leader in the top percentile of all manufacturing companies regardless of industry. Every facility where Visteon has financial control (more than 50 percent ownership) is certified to the OHSAS 18001 safety standard.

For 2016, Visteon continues to champion aggressive safety targets for all of its facilities. All Visteon sites have zero lost-time accidents as a target, and the company is tracking all first-aid cases, performing analytics on those cases and prioritizing improvement actions. Visteon is committed to continuing to improve its status as an industry leader in safety regardless of business sector. The graph below shows the relative performance in lost-time case rate for Visteon compared with various relevant industries.

Relevant industry comparison for LTCR (Data derived from 2012 Bureau of Labor Statistics data)

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EXAMPLES OF SAFETY SUCCESS – 2015

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Chennai Plant Celebrates More than 13 years of Employee SafetyVisteon’s manufacturing center in Chennai, India, celebrated a significant safety milestone, passing 5,000 days without a safety incident. Competitions had taken place among staff members beforehand, looking for the best, most creative and informative safety videos and posters, which were displayed and presented during the ceremony.

Reynosa Plant in Mexico Celebrates 500 Days without Safety Accident Visteon’s manufacturing Plant in Reynosa, Mexico, achieved a significant safety milestone in 2015: 500 days without a safety accident. Employees celebrated with cake and other treats in the cafeteria. The achievement signaled the personal accountability of Reynosa employees, while demonstrating the importance of a “safety first” mindset.

Hiroshima Plant Completes 3,000 Days without Safety IncidentVisteon’s plant in Hiroshima, Japan, marked a safety achievement in October 2015 when the facility recorded its 3,000th consecutive day without a lost-time case (LTC). Employees were recognized for helping the plant go eight years without a safety incident, thanks to its “Keep Zero” policy that ensures potential risks are reported immediately and safety measures are implemented efficiently and successfully.

Through corporate contributions, Visteon demonstrates to its neighbors in communities where it operates that the company cares about them, their families and their future. Visteon supports the belief that a cohesive society is an essential foundation for business success, and that companies thrive with healthier, better-educated and more productive people. Visteon's contributions are concentrated in two focus areas: youth and the environment.

Visteon has funded programs around the world that improve the lives of children by providing food, shelter, health care and mentoring activities. Funding has also been provided for environmental programs that preserve and protect the environment, including the establishment of parks and the protection of wildlife.

COMMUNITY

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Employees in China Donate School Supplies for Students in NeedVisteon employees in China participated in an initiative to support underprivileged students, organized by Shanghai Sunrise, a charitable program under the umbrella of the Shanghai Charity Foundation. Employees provided 20 gift bags of school supplies, books and sporting goods for the students, who attended the 20th Annual Shanghai Sunrise Pairing Ceremony at the Jing'an Hilton in Shanghai on Nov. 22, 2015.

Visteon has sponsored the program since 2005, donating a total of RMB 345,250 (USD 53,000) to 31 underprivileged students in 10th grade and above. Shanghai Sunrise and the students expressed appreciation for Visteon’s long-term partnership and employee generosity.

Christmas Bazaar in Bulgaria Benefits Youth Development Visteon employees organized a traditional Christmas bazaar to benefit physically impaired children. The children joined employees at the technical center in Sofia to sell handcrafted gifts created during art classes. The money raised is used for new materials that benefit the children’s mental and social development. Visteon team members also helped organize donations of clothes and food to the “Detchitsa” foundation, which helps physically impaired and orphaned children.

Refugee Camp in Cologne Receives Donations from Visteon EmployeesVisteon employees in Karslruhe and Kerpen, Germany, donated toiletries, clothing, boots and shoes for residents of a refugee camp in Cologne. The donation was arranged through Johanniter-Unfall-Hilfe e.V., a national organization supporting the disadvantaged and homeless. Founded in 1952, Johanniter-Unfall-Hilfe e.V., commonly referred to as Die Johanniter, is a voluntary humanitarian organization affiliated with the Brandenburg Bailiwick of the Order of St. John.

EXAMPLES OF COMMUNITY SUCCESS – 2015

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Visteon Contributes to India Flood Relief EffortsVisteon donated funds to the non-profit organization Aid India to support relief efforts related to devastating flooding in the region around Chennai, Tamil Nadu, where the company has manufacturing and technical operations.

Aid India, founded in 1996, has historically supported education quality improvement initiatives and organized massive relief and rehabilitation operations in the flood-affected areas of Chennai. Its efforts include sourcing, sorting, packing and distributing food, water and materials to those who required help. Hundreds of relief trucks reached out to nearly 83,500 people affected by the disaster.

VTCM Volunteers Show Commitment to Community Visteon employees at the Mexico Technical Center Office (VTCM) in Chihuahua volunteered to collect donations for San Antonio Nursing Home, a local facility run by Franciscan Missionaries of Poor Christ Sisters, which houses senior citizens in need. Visteon volunteers also spent considerable time with residents, interacting over games and conversation.

Life Remodeled Volunteers Clean Up In DetroitMore than 50 volunteers from Visteon’s corporate offices and innovation center in Van Buren Township, Michigan, cleared nearly two blocks of blight in the area surrounding a Detroit high school in the summer of 2015. Armed with work gloves and power tools, volunteers mowed lawns, cut down trees and shrubs, cleared garbage and created safe and inspirational pathways to Osborn High School, as part of the Life Remodeled cleanup.

Visteon also donated to Life Remodeled as part of a larger effort to clean up and maintain the Osborn community. Osborn High School received a new roof and gymnasium bleachers, and many classrooms were remodeled. The Visteon team members were among some 12,000 volunteers who removed blight in a 300-block area of Detroit.

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$200,000 Donation Underscores Visteon’s Support for Math, Science EducationThrough the non-profit Visteon Fund, Visteon contributed $200,000 over four years to the Michigan Science Center (MiSci), a science, technology, engineering and mathematics (STEM)-focused museum in Detroit. MiSci will put the Visteon Fund donation toward its many engaging activities, community outreach programs, traveling exhibits and more.

MiSci offers an interactive approach to science, with hands-on exhibits, live shows, theaters and more. The Visteon Fund is a tax-exempt, non-profit organization that has funded programs around the world, primarily aimed at improving the lives of children by providing food, shelter, health care and mentoring activities.

Students Blossom under Engineering Mentorship ProgramVisteon was recognized with a special award for its involvement in the Science Technology Engineering and Mathematics (STEM) academy mentorship program at Canton (Michigan) High School in the U.S. The Plymouth-Canton Board of Education acknowledged Visteon’s outstanding efforts in introducing high school students to engineering.

The overall initiative is aimed at 8th to 12th grade students (ages 13-17) who have an interest in science. Visteon participates in the "pathway to engineering track," which provides, among other topics, an opportunity for students to get a hands-on introduction to the principles of engineering and engineering design and development.

Visteon Launches Student Academy Program in BulgariaVisteon’s technical center in Sofia, Bulgaria, initiated a pioneering academy program, offering engineering students a unique opportunity to develop their software development and validation skills in a dynamic work environment. Taught by a group of Visteon technical experts, the three-month course offered the graduates an accelerated learning program, focusing on best practices in software development.

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Employees in Chelmsford, UK, Support Cancer Awareness WeekEmployees at Visteon’s European Corporate Office (VECO) in Chelmsford, UK, supported a nationwide cancer awareness week, raising funds and participating in weekly events. For the first time, multiple organizations – including the Teenage Cancer Trust and Cancer Research UK – were chosen as beneficiaries of the week’s events, each targeting a different area of cancer support and research.

The week started with a bike ride – as a group of 20 VECO employees and friends cycled 25 miles on an assortment of two-wheelers including traditional British bicycles such as the penny farthing and a tandem. Office-based events during the week included a cake sale, raffle, silent auction and a donation station. Fundraising culminated with a “loud shirt day,” which produced a variety of interesting and colorful items of clothing from employees throughout VECO.

UK Employees Volunteer at Children’s CenterA facility in Chelmsford, UK, which offers support to families in need, benefited from a volunteer effort by employees at the European Corporate Office (VECO) in Chelmsford. Employees volunteered at the Chelmsford West children’s center, which provides counseling and outreach services to families with children under 5 years old.

The main aim of the day was to help renovate the outdoor areas of the center – clearing up the garden and adding extra features to the landscape. Before the volunteers arrived, it was difficult for the center to use the outdoor space with young children. By the end of the day, the area was ideal for children to play in and explore.

Carolinas Plant Celebrates National Children’s Day Visteon’s Carolinas plant in Chihuahua, Mexico, hosted employees’ children to celebrate the national Children’s Day – making the day entertaining with a movie theater matinee. Young visitors were treated to soda, popcorn and other treats to enjoy three movies during the event. Cinderella and Captain America characters welcomed guests, and face painting was offered.

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Visteon Recognized for “Active Workplace” in UK Visteon was named a 2015 "active workplace of the year" by an organization in the UK that supports physical activity and fitness. Visteon accepted the award from Active Essex at a ceremony in Colchester, UK. The achievement recognizes Visteon's efforts to encourage a healthy and active workplace for employees.

GRI INDEXVisteon's online sustainability report relies on aspects of the Global Reporting Initiative's (GRI) G3 reporting framework to shape its content. On the following page is a cross reference index of GRI indicators found in this report. One aspect of this process is a self-assessment of the level for which this framework has been applied. View Visteon's self-assessed application level grid.

GRI Table

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* Sector supplement in final version

Report on each core G3 and Sector Supplement* Indicator with due regard to the Materiality Principle by either: a) reporting on the Indicator or b) explaining the reason for its omission.

Report on a minimum of 20 Performance Indicators, at least one from each of Economic, Environmental, Human Rights, Labor, Society, Product Responsibility.

Report on a minimum of 10 Performance Indicators, including at least one from each of: Economic, Social and Environmental.

Management Approach Disclosures for each Indicator Category

Management Approach Disclosures for each Indicator Category

Not Required

Same as requirement for Level B

Report on all criteria listed for Level C plus:1.23.9,3.134.5-4.13, 4.16-4.17

Report on:1.12.1-2.103.1-3.8, 3.10-3.124.1-4.0,4.14-4.15

A+AB+BC+CReport Application Level

OU

TPU

TG3 Profile

DisclosuresO

UTP

UTG3 Performance

Indicators & Sector Supplement

Performance Indicators

OU

TPU

T

G3 Management Approach

Disclosures

Rep

ort E

xter

nally

Ass

ured

Rep

ort E

xter

nally

Ass

ured

Rep

ort E

xter

nally

Ass

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Sta

ndar

d D

iscl

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GRI Application Level C

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GRI CONTENT INDEX CROSS REFERENCEEconomic PerformanceEC1 Economic value generated and distributed, including

revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments. (Core)

EnvironmentalEnergyEN3 Direct energy consumption by primary energy

source. (Core)EN4 Indirect energy consumption by primary source.

(Core)

WaterEN8 Total water withdrawal by source. (Core)

Emissions, Effluents and WasteEN16 Total direct and indirect greenhouse gas emissions

by weight. (Core)EN22 Total weight of waste by type and disposal method.

(Core)

Social Performance: Labor Practices & Decent WorkOccupational Health and SafetyLA7 Rates of injury, occupational diseases, lost days and

absenteeism, and number of work-related fatalities by region.

Diversity and Equal OpportunityLA13 Composition of governance bodies and breakdown

of employees per category according to gender, age group, minority group membership, and other indicators of diversity. (Core)

Social Performance: Human RightsInvestment and Procurement PracticesHR1 Percentage and total number of significant

investment agreements that include human rights clauses or that have undergone human rights screening. (Core)

HR2 Percentage of significant suppliers and contractors that have undergone screening on human rights and actions taken. (Core)

Child LaborHR6 Operations identified as having significant risk for

incidents of child labor, and measures taken to contribute to the elimination of child labor. (Core)

Forced and Compulsory LaborHR7 Operations identified as having significant risk for

incidents of forced or compulsory labor, and measures to contribute to the elimination of forced or compulsory labor. (Core)

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2016 TARGETS Visteon's 2016 Environmental, Health and Safety (EH&S) and Sustainability targets include:• Total recordable injury rate: ≤ 0.023 (recordable case reduction from 4 to ≤ 3 cases) • Total lost time injury rate: ≤ 0.015 (lost time case reduction from 3 to ≤ 2 cases) • Total severity rate: ≤ 0.72 (lost day reduction from 158 to ≤ 94 days) • 0 work-related fatalities • 0 significant fire incidents, spills or releases – significant fire / spill incident is globally defined as any fire or spill incident resulting in any of the following: >$5,000 damage, employee injuries or regulatory violation • 0 notices of regulatory noncompliance • 0 fines • 0 major noncompliances for ISO14001 / OHSAS 18001 certification audits • Electricity per shipped parts 7% YOY improvement • Waste per shipped parts 10% YOY improvement • Water per shipped parts 10% YOY improvement guideline • 100% completion of training for regulatory requirements, new employees and contractors • 100% compliance with all customer product-related supply chain sustainability / EHS requirements • Good or excellent (minimum of 70%) in Visteon EHS behavior-based assessment tool scoring for all manufacturing sites • Tracking all first-aid cases, perform analytics and prioritize improvement actions • 100% completion of EH&S Quick Self Assessment for manufacturing sites

2015 TARGET PERFORMANCE

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10.6%Waste efficiency improvement of 10% YOY Exceeded target

0 major non-compliances0 major non-compliances during ISO14001/OHSAS 18001 Certification audits

Several minor violationstotaling <$5,000

that have been resolved

0 fines

No outstanding non-compliances for any plant

No outstanding non-compliances for any plant

Several notices of minor non-compliance that have been resolved

0 notices of regulatory non-compliances

More than 90% of all facilities did not register a lost-time case in 2015

Met stretch target and continue to strive as world-class performer

00 work related fatalities

0.05Recordable injury rate 0.25

All-time low severity rate; maintains position in top percentile of all manufacturing companies regardless of industry

1.37Severity rate of 2.5

Fourth consecutive year of all-time low LTCR for the company, placing itin the top percentile of all manufacturing companies regardless of industry

0.03Lost-time case rate (LTCR) of 0.10

Comments2015 PerformanceGoal

Missed target – implementing measures to improve performance1.0%Energy efficiency improvement of 10% YOY

Missed target – plant activity levels were up on average across all plants, leading to increased water usage (evaluating normalized metric)

-1.4%Water reduction of 10% YOY

On track to comply with conflict mineral requirementsOn trackCompliance to all customer and government related working conditions

100% compliance achieved100% compliance with all customer product-related EHS requirements

Visteon has exceeded its 2012 three-year target of a 20% reduction in normalized emissions, more than doubling the goal

49%20% reduction in CO2 emissions over 3 years (2012 baseline)

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ENVIRONMENTAL METRICS

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HEALTH AND SAFETY METRICSHealth and Safety Indicator DefinitionsThe main indicator Visteon uses to measure health and safety is lost-time case rate (LTCR), i.e. the number of work-related injuries and illnesses that result in time off work. This number represents lost-time cases per 100 full-time workers and is calculated by dividing the number of lost-time cases by the total hours worked by all employees during the year and then multiplying the result by 200,000 (200,000 is the number of hours that 100 employees would work in a year, based on 40 hours per week and 50 weeks per year).

The other primary health and safety measure is severity rate. Severity is the number of days an employee misses (lost days) due to a work-related injury or illness. Severity rate represents the number of lost days per 100 full-time workers and is calculated by dividing the number of lost days by the total hours worked by all employees during the year and then multiplying the result by 200,000 (200,000 is the number of hours that 100 employees would work in a year, working 40 hours per week and 50 weeks per year).

A recordable injury is a work-related injury that results in medical treatment greater than first aid, or results in restricted work or lost days of work. The recordable rate represents the number of recordable injuries per 100 full-time workers and is calculated by dividing the number of recordable injuries by the total hours worked by all employees during the year and then multiplying the result by 200,000 (200,000 is the number of hours that 100 employees would work in a year, working 40 hours per week and 50 weeks per year).

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ZERO INJURY FACILITIESThe following facilities had zero work-related injuries or illnesses for all of 2015:

Brazil Manaus

Bulgaria Sofia

China VFAE - Chongchun Visteon Chongqing Visteon Shanghai YFVE Chongqing Xugang YFVE Shanghai YFVE Technology Company

France Cergy-Pontoise

Germany Karlsruhe Kerpen Tech Center VEG Kerpen

India Chennai Tech Center VASI Chennai

Japan Hiroshima Hiroshima Electronics Yokohama

Mexico Carolinas Mexico Tech Center Reynosa

Portugal Palmela

Russia Visteon Avtopribor Electronics

Slovakia Namestovo

South Korea Visteon Electronics Korea Yesan

Thailand Visteon Thailand, Ltd. Electronics

Tunisia Bir El Bay

United Kingdom Chelmsford VECO VTC Chelmsford

United States Grace Lake Corporate Center

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