Climate Change Data

Tennant Company

Climate Impact & Sustainability Data (2019, 2021, 2024 (FY23))

Reporting Period: 2019

Environmental Metrics

Total Carbon Emissions:29,572 mT CO2e (2018 data)
Scope 1 Emissions:22,800.3 mT CO2e (2018 data)
Scope 2 Emissions:6,765.4 mT CO2e (2018 data)
Scope 3 Emissions:520,057 mT CO2e (2018 data)
Renewable Energy Share:53.5% of total electricity used (2019)
Waste Generated:Over 4,500 metric tons of industrial recycling material (2019)

ESG Focus Areas

  • Products
  • GHG Emissions & Energy
  • Waste
  • People & Communities

Environmental Achievements

  • Reduced Scope 1 & 2 GHG emissions by 2.8% year over year (2018 data).
  • Reduced absolute GHG emissions by more than 6% since 2012.
  • Achieved Leadership level (A-) score for the third consecutive year under the CDP Climate Change program.
  • Recycled over 4,500 metric tons of industrial recycling material in 2019 (12.5% increase over 2018).
  • Successfully reused 1000 workstations from the new headquarters, diverting them from landfill.

Social Achievements

  • Reduced safety incidents by 30% from 2018 in North America Tennant Sales & Service.
  • Increased volunteer hours in Holland, MI by 185% compared to previous years.
  • Donated $462,000 through the Tennant Foundation.
  • Became a Signatory of the United Nations Global Compact (UNGC).

Governance Achievements

  • Conducted a study to examine gender differences in median pay, finding a gender pay gap of 0.84% after controlling for type of work.

Climate Goals & Targets

Long-term Goals:
  • Zero waste to landfill.
Medium-term Goals:
  • Reduce absolute Scope 1 & 2 emissions by 25% by 2030 (from 2016 baseline).
  • Reduce Scope 3 use of sold products emissions by 50% per $USD of equipment revenue by 2030 (from 2016 baseline).
Short-term Goals:
  • Reduce Scope 1 & 2 emissions intensity by 25% by 2020 (from 2012 baseline).

Environmental Challenges

  • Scope 3 GHG emissions increased by 2.4% compared to 2017 (partially due to including Tennant Brazil in the boundary).
  • Internal combustion (IC) machines still have a significant impact on overall emissions.
Mitigation Strategies
  • Focusing on electrification and maintaining engine standards to reduce future product emissions.
  • Implementing efficiency improvements for operations and vehicle fleets.
  • Increasing commitment to renewable energy through purchasing Guarantees of Origin (GOs) and Renewable Energy Credits (RECs).
  • Shifting transportation of heavy parts from air to sea mode to reduce carbon emissions.

Supply Chain Management

Responsible Procurement
  • Supplier Code of Conduct including human rights, minimum age, and forced labor provisions.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards Core, CDP Climate Change Program

Certifications: ISO 9001 (Holland, MI facility), ISO 14001 (Madrid Sales and Service Office)

Third-party Assurance: Trucost (for Scope 1 & 2 and Scope 3 Category 11 GHG emissions)

Sustainable Products & Innovation

  • Products powered by lithium-ion batteries and hydrogen fuel cells
  • T7 AMR autonomous mobile robot

Awards & Recognition

  • 2019 Good Design Award for the T7AMR

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:716,793 tCO2e/year
Scope 1 Emissions:24,105.6 tCO2e/year
Scope 2 Emissions:10,201.5 tCO2e/year (location-based), 1903.6 tCO2e/year (market-based)
Scope 3 Emissions:677,482 tCO2e/year
Renewable Energy Share:85.8% of total electricity use
Total Energy Consumption:131,524.8 MWh/year
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:23.8 mT CO2e per $M of total revenue

ESG Focus Areas

  • Climate Change
  • Sustainability

Environmental Achievements

  • Reduced Scope 1 & 2 GHG emissions by 36.9% from 2016 baseline.
  • Reduced Scope 3 emissions intensity (Use of sold products) by 32.2% from 2016 baseline.
  • Helped customers avoid more than 11,200 mT CO2 emissions in 2021 through ec-H2O and ec-H2O NanoClean® technologies.
  • Helped customers avoid more than 125,000 mT CO2 emissions to date through ec-H2O technologies.
  • Implemented 17 energy efficiency and reduction projects resulting in an estimated 1,738 mT CO2e in emissions reductions.

Social Achievements

  • Not disclosed

Governance Achievements

  • Board-level oversight of climate-related issues through the Governance Committee.
  • Executive compensation program designed to align short- and long-term operating goals with shareholder interests and considers carbon emissions and climate-related issues.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Reduce Scope 1 & 2 GHG emissions by 25% by 2030 (current target).
  • Reduce Scope 3 emissions from the Use of sold products by 50% per $USD of equipment revenue by 2030 (current target).
Short-term Goals:
  • Develop new SBTs by end of 2022, including IPC and Gaomei acquisitions, and aligning with 1.5°C warming limit.

Environmental Challenges

  • Supply chain disruptions due to extreme weather events.
  • Increased cost of raw materials due to supply chain disruptions.
  • Potential increase in energy costs due to carbon pricing mechanisms and emerging regulations.
  • Acute physical risks from increased severity and frequency of extreme weather events.
Mitigation Strategies
  • Monitoring energy use and implementing energy efficiency and reduction projects.
  • Sourcing energy from renewable sources (purchasing Guarantees of Origins (GOs) and Renewable Energy Credits (RECs)).
  • Robust business continuity planning.
  • Regular communication with suppliers to understand cost increases.
  • Developing alternative sourcing strategies.
  • Investing in energy-efficient equipment and efficiency projects.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Sustainability and climate-related questions in supplier assessments.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events impacting operations and supply chain.
Transition Risks
  • Carbon pricing mechanisms and emerging regulations increasing energy costs.
Opportunities
  • Increased demand for low-carbon products.
  • Development of new low-emission products and services through R&D and innovation.
  • Access to new markets through reconditioned equipment (RECON).

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol, Science Based Targets initiative (SBTi)

Certifications: Null

Third-party Assurance: S&P Global

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • ec-H2O and ec-H2O NanoClean® technologies
  • Autonomous mobile robot (AMR) floor cleaning products
  • IPC all-electric hot pressure washer (PW-E100)
  • Reconditioned equipment (RECON)

Awards & Recognition

  • Not disclosed

Reporting Period: 2024 (FY23)

Environmental Metrics

Total Carbon Emissions:696,710 mT CO2e (Scope 1, 2, and material Scope 3)
Scope 1 Emissions:21,802.1 mT CO2e
Scope 2 Emissions:837.4 mT CO2e (market-based)
Scope 3 Emissions:674,070.5 mT CO2e (material scopes)
Renewable Energy Share:92%
Total Energy Consumption:20,554 MWh
Waste Generated:2,011 metric tonnes

ESG Focus Areas

  • Climate & energy
  • Water & chemical use
  • Circular products & waste
  • Employee success
  • Social impact
  • Shared spaces

Environmental Achievements

  • Reduced Scope 1 & 2 GHG emissions by 13% compared to 2021 baseline.
  • Reduced Scope 3, category 11 (use of sold products) emissions by 8% compared to 2021 baseline.
  • Increased renewable energy portfolio to 92% of total electricity consumed globally.
  • Reduced emissions from global fleet by 8% compared to 2021 baseline.
  • Golden Valley, MN manufacturing plant diverted over 99% of total waste generated away from landfill or incineration.

Social Achievements

  • Increased representation of women in leadership positions globally to 23.0% (from 22.1% in 2022).
  • Increased representation of U.S. employees identifying as BIPOC to 25.4% (from 24.0% in 2022).
  • Donated over $1.1M USD to support communities (exceeding the 2% of pre-tax U.S. 2022 earnings target).

Governance Achievements

  • Launched refreshed ethics hotline intake website.
  • Streamlined conflicts of interest process.
  • Established cross-functional teams to implement sustainability initiatives.

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero greenhouse gas emissions across scopes 1, 2, and 3 by 2040.
Medium-term Goals:
  • Reduce Scope 1 & 2 GHG emissions by 45% by 2030.
  • Source 100% of electricity from renewable sources by 2030.
  • Reduce emissions from global fleet by 40% by 2030.
  • Reduce Scope 3, category 11 emissions by 45% by 2030.
  • Increase representation of women in leadership positions globally to 33% by 2030.
  • Increase representation of U.S. BIPOC employees to 30% by 2030.
  • Enable the cleaning of 63.5 trillion square feet across shared spaces by 2030.
Short-term Goals:
  • Establish water baselines for at least five manufacturing facilities by 2024.
  • Conduct two ISO-compliant life-cycle assessments by 2024.
  • Establish waste baselines for at least five manufacturing facilities by 2024.

Environmental Challenges

  • Reducing Scope 3 emissions across the value chain.
  • Establishing water baselines for manufacturing facilities.
  • Implementing comprehensive waste reduction strategies globally.
Mitigation Strategies
  • Partnering with customers and suppliers to reduce emissions.
  • Developing a process for collecting water consumption data.
  • Developing and implementing a comprehensive waste reduction playbook.

Supply Chain Management

Responsible Procurement
  • Supplier Core Expectations outlining zero-tolerance policy on forced labor, human trafficking, child labor, and discrimination.

Climate-Related Risks & Opportunities

Physical Risks
  • Droughts and floods
Transition Risks
  • Regulatory changes, market shifts
Opportunities
  • Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 9001, ISO 14001, ISO 45001

Third-party Assurance: Deloitte & Touche LLP (review of GHG Emissions Statement)

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 9 (Industry, Innovation, and Infrastructure)
  • Goal 12 (Responsible Consumption and Production)
  • Goal 13 (Climate Action)
  • Goal 8 (Decent Work and Economic Growth)
  • Goal 11 (Sustainable Cities and Communities)
  • Goal 17 (Partnerships for the Goals)

Mapped to Thriving People and Healthy Planet pillars.

Sustainable Products & Innovation

  • Electrically powered equipment
  • Water management solutions
  • Chemical-free cleaning technologies
  • Autonomous mobile robots (AMRs)

Awards & Recognition

  • 2023 America’s Most Responsible Companies by Newsweek
  • 2023 Good Design Award for IPC PW-H101
  • Minnesota Safety Council Silver Achievement Award (Golden Valley plant)