Montrose Environmental Group, Inc.
Climate Impact & Sustainability Data (2022, 2023)
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:14,235 MTCO2e (Scope 1 & 2)
Scope 1 Emissions:9752 MTCO2e
Scope 2 Emissions:4483 MTCO2e
Scope 3 Emissions:51969 MTCO2e
Renewable Energy Share:Not disclosed
Total Energy Consumption:79,026 GJ
Water Consumption:3,357,623,037 gallons
Waste Generated:76.3 tons non-hazardous, 832.6 tons hazardous
Carbon Intensity:26.2 MTCO2e/$M (Scope 1 & 2) in 2022
ESG Focus Areas
- Environmental
- Social
- Governance
Environmental Achievements
- Improved data collection process and expanded operational boundaries for GHG emissions inventory to include all global operations.
- Undertook first inventory of Scope 3 GHG emissions.
- Treated over 3.3 billion gallons of water for PFAS and other contaminants in 2022.
- Generated 127,379 MMBtu of biogas through renewable natural gas production.
Social Achievements
- Added 1,140 employees in 2022, 210 from underrepresented groups.
- Launched formal, annual gender pay equity evaluation and amendment effort.
- Deployed mandatory inclusion training; 97% completion rate.
- Continued WeLEAD mentorship program with 120 participants; 80% felt it was a good match.
Governance Achievements
- Expanded GHG disclosures to cover global operations and value chain.
- Established long-term goals: net zero GHG emissions and gender balance by 2040.
- Improved internal conflicts clearance policies and procedures.
- Implemented a certified security information management system (SIMS) employing the NIST 800-171 framework.
Climate Goals & Targets
Long-term Goals:
- Achieve net zero GHG emissions by 2040.
- Achieve gender balance across workforce by 2040.
Medium-term Goals:
- Achieve near-term GHG reduction targets.
Short-term Goals:
- Set near-term (e.g., 2030) GHG reduction targets validated by SBTi.
Environmental Challenges
- Significant growth resulting in increased absolute GHG emissions.
- Insufficient data for some Scope 3 GHG emission categories.
- 29% employee turnover rate.
- Cybersecurity attack in June 2022.
Mitigation Strategies
- Improved data collection and expanded scope of GHG inventory.
- Taking actions to identify data sources for missing Scope 3 categories.
- Focusing on attracting, engaging, supporting, and retaining talent.
- Increased Cybersecurity team capacity, enhanced Incident Response Plan, implemented Vulnerability Management tool, and increased user awareness training.
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Developing a Sustainable Procurement Policy.
Climate-Related Risks & Opportunities
Physical Risks
- Flooding, wildfires, storms, sea level rise, temperature increases
Transition Risks
- CO2 pricing, compliance costs, changes in climate disclosure regulations
Opportunities
- Lower-emissions energy sources, new markets, renewable energy programs, energy efficiency measures
Reporting Standards
Frameworks Used: SASB Standards for Professional and Commercial Services, GRI Standards, TCFD
Certifications: ISO 9001, ISO 14001, ISO 45001 (Australia operations)
Third-party Assurance: Third-party assurance provider (specified in report, but not explicitly named)
UN Sustainable Development Goals
- 3
- 6
- 8
- 9
- 10
- 13
- 15
Detailed explanation provided in the UN Sustainable Development Goals Appendix of the report.
Sustainable Products & Innovation
- Regenerable ion exchange PFAS treatment technology
- Montrose’s Carbon Conversion Process
Awards & Recognition
- Region 3 Phoenix Award for Brownfields Excellence
- National Safety Council 2022 CEOs Who “Get It” honoree
- National Safety Council Award for Operational Excellence
- CTEH, Houston Outstanding Safety Performance “Best in Class” award
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:16,882 MTCO2e (Scope 1 & 2)
Scope 1 Emissions:11,621 MTCO2e
Scope 2 Emissions:5,261 MTCO2e
Scope 3 Emissions:85,665 MTCO2e
Renewable Energy Share:Not disclosed
Total Energy Consumption:234,610 GJ
Water Consumption:Not disclosed
Waste Generated:127.9 tons
Carbon Intensity:27.1 MTCO2e/$M (Scope 1 & 2); 137.3 MTCO2e/$M (Scope 3)
ESG Focus Areas
- Climate Change
- Diversity, Fairness, and Inclusion (DF&I)
- Employee Retention and Rewards
- Cybersecurity and Data Privacy
- Health and Safety
- Governance
Environmental Achievements
- Expanded energy use and greenhouse gas (GHG) emissions disclosures, including recalculating baseline inventory and undertaking an enhanced Scope 3 emissions inventory.
- Developed near-term targets to underpin net zero goal and submitted them to the Science-Based Targets initiative (SBTi) for validation.
- 4+ billion gallons of water treated for PFAS globally
- 62,320 LDAR survey workdays
- 63 million gallons of water treated for other contaminants
- 912 pounds of PFAS removed from the environment globally
- 47,384 methane (CH4) emission leaks detected through the application of LDAR survey work
- 184,808 million British thermal units (MMBtu) of Renewable Natural Gas (RNG) generated through the application of our biogas technology
Social Achievements
- Continued investment in DF&I program and WeLEAD mentorship program.
- Established two new Employee Resource Groups (ERGs) and developed DF&I introductory materials for new and acquired employees.
- Undertook an organization-wide talent review to identify future leaders, assess talent gaps and chart future growth opportunities.
- Executive leadership team (ELT) and Board undertook succession planning to support the longevity of our business.
- Assessed training and development needs across the organization as part of the talent review to inform individual development needs and companywide opportunities for new and enhanced development programs.
- Employees completed over 4,700 hours of cybersecurity training, adding four new training modules to our annual cybersecurity training platform.
Governance Achievements
- Enhanced processes concerning cybersecurity, safety and risk management to strengthen resilience to future challenges.
- Established a Generative AI Policy.
- Neared completion in implementing the requirements for Cybersecurity Maturity Model Certification Level 1 across the entire organization and began implementation of an automated security flaw remediation process.
Climate Goals & Targets
Long-term Goals:
- Net Zero GHG Emissions by 2040
- Gender Balance Across our Workforce by 2040
Medium-term Goals:
- Not disclosed
Short-term Goals:
- Achieve near-term (2030) targets for GHG emissions reductions (submitted to SBTi for validation).
Environmental Challenges
- Achieving net zero GHG emissions and maintaining gender balance across the workforce.
- Managing the impact of a growing geographic footprint on energy consumption and GHG emissions.
Mitigation Strategies
- Established 2022 as baseline for GHG emissions, aligning with the GHG Protocol and planning to annually update the baseline.
- Submitted near-term and net zero targets for validation via the Science-Based Target initiative (SBTi).
- Exploring strategies to achieve these goals in 2024, including procurement of renewable energy, fleet electrification, and other decarbonization solutions.
- Conducting regular pay equity assessments and engaging with leadership annually.
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Not disclosed
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Not disclosed
Opportunities
- Not disclosed
Reporting Standards
Frameworks Used: GHG Protocol, Science-Based Targets initiative (SBTi)
Certifications: null
Third-party Assurance: Third-party independent verification (limited assurance)
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Carbon Conversion Process (designed to capture carbon dioxide from manufacturing processes and convert it into usable feedstock)
Awards & Recognition
- Not disclosed