Climate Change Data

Environmental Metrics

ESG Focus Areas

• Workforce
• Community Enhancement
• Health & Wellness
• Diversity & Inclusion

Social Achievements

• Partnered with Indianapolis Symphony Orchestra, bringing over 2,500 attendees to a free concert.
• Coperion Wytheville received Chamber of Commerce Manufacture Leadership award for civic service.
• Batesville Manchester plant partnered with local schools to increase literacy.
• Annual Manufacturing Camp engaged middle school students with Hillenbrand & Batesville employees, teaching lean and manufacturing principles.
• Associates helped design STEAM-based learning tools for K-6th grade and volunteered as camp counselors.
• Many locations host associate-maintained gardens, donating produce to local non-profits.
• Hillenbrand 500 bike race promoted health and wellness, with corporate philanthropic donations to teams.
• Batesville’s Manchester plant leads in the Healthier Tennessee Initiative.
• Corporate Center partnered with Food & Growers Association for a health and sustainable agriculture campaign.
• Associates participated in Manufacturing Day to promote the manufacturing industry.
• Hillenbrand Community Leadership Series (HICLS) engaged 20 community individuals with company leaders in strategic discussions on building attractive locations.
• Rotex Global partnered with RefugeeConnect to improve the lives of refugees and foster community acceptance.

Governance Achievements

• Created a Sustainability Steering Committee to guide the Company’s efforts.

Climate Goals & Targets

Environmental Challenges

• Attracting talent in rural communities.
• Lack of entertainment options in Batesville (addressed through partnership with Indianapolis Symphony Orchestra).

Mitigation Strategies

• Focusing on projects improving quality of place and educational attainment to attract and retain talent.
• Partnership with Indianapolis Symphony Orchestra to address lack of entertainment options in Batesville.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, & Inclusion
• Governance
• Energy and Emissions
• Supply Chain
• Worker Safety
• Human Rights

Environmental Achievements

• Reduced GHG emissions (MT CO2e) per Million Working Hours: Scope 1 by 17%, Scope 2 by 11%
• Installed a chip compactor at Coperion’s Wytheville facility to increase metal chip recycling efficiency.
• DME replaced grinding process with milling, enabling metal chip recycling.
• Batesville implemented enhanced casket packaging, eliminating 200,000 pounds of plastic wrap and ~60,000 pounds of blankets annually.
• Batesville uses sawdust and scrap wood to fuel boilers, reducing heating oil use.

Social Achievements

• Launched five associate-driven Business Resource Groups (BRGs) focusing on women, next generation, multicultural/multinational, LGBTQ+, and veterans.
• Expanded paid parental leave policy, benefiting over 50 associates.
• Implemented robust unconscious bias training for management and HR staff.
• Improved Rolling Recordable Incident Rate (RIR) from 1.84 in 2020 to 1.72 in 2021.

Governance Achievements

• Added Chief Sustainability Officer role in 2021.
• Embedded ESG topics into enterprise risk management (ERM) process.
• 99% of associates completed Code of Ethical Business Conduct training.
• 99% of associates completed Anti-Bribery and Anti-Corruption training.

Climate Goals & Targets

Environmental Challenges

• Complex supply chain issues
• Attracting and retaining talent
• Adjusting to meet customer demand in a strained macroeconomic environment
• Understanding and reducing the company's impact on climate change.

Mitigation Strategies

• Developed an energy-reduction toolkit based on a greenhouse gas mitigation hierarchy.
• Implemented a data collection methodology to better understand energy use and emissions.
• Formed an Environmental Council to drive environmental practices and priorities.
• Established partnerships with non-profit organizations, suppliers, and customers.
• Augmented U.S. and Canada-based recruiters to address record recruitment volume.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Standards
• Human Rights Policy
• Global Environmental Policy
• Supplier Diversity Policy
• Supply Chain Transparency Policy
• Anti-Corruption Policy
• Conflict Minerals Policy
• Code of Ethical Business Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI 101 Foundation: 2016 standards, SASB, UNGC

Certifications: ISO 9001:2015 (20 sites), ISO 14001 (3 sites), ISO 45001 (1 site)

Third-party Assurance: Internal assurance by Hillenbrand’s Internal Audit Department

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

Initiatives related to energy reduction, waste reduction, recycling, and clean technology contribute to these goals.

Sustainable Products & Innovation

• Coperion's ZSK twin screw extruder for battery production and PET recycling
• Mold-Masters co-injection system for using up to 50% PCR
• DME's QR code inserts

Awards & Recognition

• Bloomberg Gender Equality Index