Climate Change Data

Environmental Metrics

ESG Focus Areas

• Conflict Minerals

Governance Achievements

• Adopted a Conflict Minerals Policy publicly available on their website.
• Established a Conflict Minerals Rule compliance team.
• Implemented a due diligence process aligned with the OECD Due Diligence Guidance.

Climate Goals & Targets

Environmental Challenges

• Difficulty in determining the country of origin of 3TG (tin, tantalum, tungsten, and gold) in their products due to the complexity of their supply chain and the reliance on supplier-provided information.
• Inability to confirm that Conflict Minerals in their products were processed by any particular smelter.

Mitigation Strategies

• Enhanced supplier communication, training, and escalation processes to improve due diligence data accuracy.
• Continued efforts to drive suppliers to obtain complete information about their smelters and refiners of Conflict Minerals.
• Reliance on industry efforts (RBA and RMI) to influence smelters and refineries to get audited and certified through RMI’s RMAP.

Supply Chain Management

Responsible Procurement

• Adoption of the RBA Code of Conduct and requiring next-tier suppliers to acknowledge and implement it.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced carbon footprint by 48% per person vs. 2020 (surpassing the 30% goal set for 2025)
• Increased renewable energy use to an average of 37% of total electrical power consumed in 2023 (up from 32% in 2022)
• Reduced carbon footprint per person by 15% compared to 2022

Social Achievements

• Reduced voluntary attrition by 30% compared to the prior year
• Increased female representation in the U.S. employee population to 20%
• Total employee matching contributions of $66,483 in 2023

Governance Achievements

• Maintained a board of directors with at least a majority of independent directors
• Implemented a rigorous annual performance evaluation process for the CEO and board members
• Established a clawback policy for executive compensation

Climate Goals & Targets

Environmental Challenges

• Managing the environmental impact of product packaging and materials
• Maintaining compliance with export controls and regulations
• Ensuring responsible sourcing of raw materials

Mitigation Strategies

• Prohibiting the use of methyl bromide for wood packaging materials
• Establishing processes and procedures to safeguard against export control violations
• Utilizing Responsible Minerals Initiatives (RMI) and the Responsible Business Alliance (RBA) Code of Conduct to address responsible sourcing concerns

Supply Chain Management

Supplier Audits: Onsite audits for critical suppliers

Responsible Procurement

• Supplier screening and verification (questionnaire on social impacts and governance)
• RBA Code of Conduct requirement for suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Sustainability Guidelines: Core Option

Certifications: ISO 9001:2015 (Milpitas, CA, Bloomington, MN, Wilmington, MA, Budd Lake, NJ, and Snoqualmie, WA locations), ISO 27001 (Information Security)

Third-party Assurance: Company’s internal auditors

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Refurbished and upgraded tools extending their lifetime

Awards & Recognition

• Not disclosed