Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Introduced more new high-efficiency products over the last several years than at any other time in our history
• Continual upgrades and replacements of equipment at Casting Solutions, LLC to meet new Federal EPA guidelines for air quality emissions

Social Achievements

• 71st consecutive year of paying a dividend
• Company and its subsidiaries strive to keep operating costs at a level that enables them to be highly competitive in the markets served

Governance Achievements

• The pension trust is managed by independent third-party administrators, under policies and guidelines established by the Employee Benefits Committee of the Board of Directors
• All loan covenants were met by a wide margin

Climate Goals & Targets

Environmental Challenges

• Challenging general economic conditions and the ongoing recession in our industry
• Rising and fluctuating fuel costs
• Increased material costs
• Litigation costs

Mitigation Strategies

• Strategies of product diversification, independent markets served, and continuous new product introductions
• Efforts to consolidate and streamline operations to improve quality and productivity, reduce material handling, and control inventory levels
• Steadily and systematically increased product prices to recover unfavorable cost increases
• Increased emphasis on cost control and resource optimization

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• high-efficiency products

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Climate Goals & Targets

Environmental Challenges

• Asbestos litigation
• Environmental compliance
• Permitting activities

Mitigation Strategies

• Vigorously defending asbestos cases
• Maintaining compliance with environmental laws and permits
• Proactively addressing permitting matters

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• High efficiency condensing boiler products

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Clean Energy Technologies

Environmental Achievements

• Launched the Alta condensing gas boiler and combi, utilizing an advanced combustion system that maximizes energy efficiencies and significantly lowers emissions.
• Launched the AMP Commercial Condensing Water Heater, a high-efficiency product.
• Introduced the Tru-O2 Commercial Combustion System, resulting in CO2 and NOx emissions well below regulations.
• Implemented Eco Propel Pumping Technology, delivering 85% savings on electrical consumption and an additional 3% savings on fuel costs.

Social Achievements

• Honored the retirement of Ed Johann and Elaine Phillips, recognizing their contributions to Burnham Holdings and the boiler industry.
• Supported a variety of energy upgrade projects throughout the New York City metro area using portable boiler rooms.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

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: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Alta condensing gas boiler and combi
• AMP Commercial Condensing Water Heater
• Tru-O2 Commercial Combustion System
• Eco Propel Pumping Technology

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Employee Safety and Wellbeing
• Product Innovation and Efficiency

Environmental Achievements

• Launch of the Alta family of high-efficiency condensing residential boiler and combi products, which introduced first-of-its-kind “gas adaptive” combustion technology to North America, providing incredibly clean, low-carbon emissions performance.
• Improved combustion technology of ARCTIC/FREEFLEX and AMP/BFIT™ product families of commercial condensing boilers, giving those products one of the lowest emission profiles in the industry.
• Continued market share gains for high-efficiency products for the third consecutive year.

Social Achievements

• Assembled a multidisciplined COVID Quick Response Team to develop protocols to manage the response to COVID-19, protecting employees, shareholders, and communities.
• Implemented social distancing practices, issued personal protective equipment (PPE), and developed cleaning protocols in all plants.
• Transitioned to a work-from-home environment for eligible employees.
• Continued investments in projects that will increase employee safety, improve their ability to design and manufacture high-quality value-added products, provide world-class customer service, and increase manufacturing productivity.
• Recognized over 90 employees who achieved service milestones last year, including 40 with over 25 years of service, one with 40 years of service and one with 45 years of service.

Governance Achievements

• Announced several important director changes, including the retirement of George W. Hodges and the election of John W. Lyman as the new Chairman of the Board.
• Declared a quarterly dividend of $0.22 per share.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic significantly impacted business volume, particularly during the second quarter.
• Significant drop in sales volume of both residential and commercial boiler products in the first half of the year due to warmer than normal weather and business closures.
• Staffing challenges due to COVID-19 protocols and quarantine restrictions.
• Unusual delays in receiving customer payments in late December through the U.S. Postal Service.

Mitigation Strategies

• Expedited the return of engineers from Italy.
• Developed a comprehensive set of decision protocols to manage COVID-related situations.
• Implemented new social distancing practices, PPE, and cleaning protocols.
• Transitioned to a work-from-home environment for eligible employees.
• Implemented a number of cost control measures.
• Product sales teams transitioned to a virtual environment.

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products

Sustainable Products & Innovation

• Alta family of high-efficiency condensing boilers
• ARCTIC/FREEFLEX and AMP/BFIT™ commercial condensing boilers
• AMP Condensing Water Heater series
• SmartWatt combined heat and power appliance

Environmental Metrics

ESG Focus Areas

• Climate Change
• Emissions Reduction

Environmental Achievements

• Reduced carbon emissions by over 20,000 tons annually through higher efficiency products.
• Launched new high-efficiency condensing boilers and water heaters (Alta/Phantom II, AMP/BFIT™) with lower emissions.
• Exploring new product designs using electric hydronic heating technologies and alternative low-carbon fuels (hydrogen, enriched natural gas, biofuels).

Social Achievements

• Continued increased sales and marketing efforts, driving unit growth for the fourth consecutive year.
• Expanded the new Alta family of high-efficiency condensing residential boiler and combi products.
• Launched the new SteamMax cast iron boiler product line.
• Developed new products specifically designed for the manufactured housing market.
• Completed the acquisition of the previously leased Crown Boiler facility in Philadelphia, Pa.
• Made numerous investments in manufacturing operations to improve productivity and reduce costs.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Unprecedented inflation, supply chain and staffing issues.
• Difficulties in finding adequate staff and raw material supply disruptions reduced overall productivity and profitability.
• Significant material price inflation.
• Multiple supply chain issues resulted in numerous shortages of critical materials that also restricted production capacity.

Mitigation Strategies

• Implemented multiple price increases during the year.
• Made numerous investments in manufacturing operations to improve productivity and reduce costs, including new, advanced core making technology at our foundry and new fiber laser and CNC machining capabilities at our sheet metal and fabrication plants.
• Continued to focus on investments in new product development and process improvements.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)

Developing and implementing energy-efficient and low-emission heating products.

Sustainable Products & Innovation

• Alta/Phantom II condensing boilers, AMP/BFIT™ condensing boilers and water heaters, electric boilers, hybrid heat pump systems, micro Combined Heat and Power (mCHP) products.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Material inflation
• Staffing challenges impacting profitability
• Supply chain issues hampering production capacity and efficiencies
• Parts availability and shortages of critical materials
• Higher interest expense due to rising interest rates and higher debt levels
• Asbestos-related litigation

Mitigation Strategies

• Appropriate pricing actions to offset inflation
• Vigorously defending all open asbestos cases
• Company believes all pending legal actions, including asbestos, should be resolved within existing insurance limits and reserves

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: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Material inflation
• Staffing challenges impacting profitability
• Multiple supply chain issues pressuring production capacity and efficiencies
• Rising interest rates and higher debt levels resulting in higher interest expense
• Asbestos-related litigation

Mitigation Strategies

• Appropriate pricing actions to offset inflationary pressures
• Vigorously defending all open asbestos cases
• Company believes pending legal actions, including asbestos, should be resolved within existing insurance limits and reserves

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: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Decarbonization
• Sustainable Products
• Employee Well-being

Environmental Achievements

• Launched a family of electric heating products (electric boiler and air-to-water heat pump) to address customer demand for electric products and reduce reliance on fossil fuels.
• Continued investment in operational improvements to reduce costs and improve efficiency across subsidiaries.

Social Achievements

• Approximately 16% of colleagues have served more than 25 years.
• Successful senior executive transition.

Governance Achievements

• Expanded borrowing capacity by 33%.

Climate Goals & Targets

Environmental Challenges

• Supply chain challenges (eased during 2023)
• Significant challenges in hiring and retaining qualified employees (eased during 2023)
• Softening U.S. residential heating industry in 2023, particularly in furnace, condensing boiler, and cast-iron boiler categories.
• Discontinuation of EnviroPower operations due to lack of funding.

Mitigation Strategies

• Improved realization of pricing actions taken in 2022 and significant tempering in inflation.
• Significant operational improvements, particularly at Casting Solutions.
• Operational efficiency gains, inventory reduction efforts, and expense control initiatives.
• Acquisition of CSI Services to expand into the service segment of the commercial/industrial boiler market and complement Thermal InMotion.

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products

Sustainable Products & Innovation

• Electric boiler
• Air-to-water heat pump