Climate Change Data

Varex Imaging Corporation

Climate Impact & Sustainability Data (2017, 2019, 2020, 2022, 2023)

Reporting Period: 2017

Environmental Metrics

Total Carbon Emissions:25,374 tons CO2e (Scope 1 and 2)
Scope 1 Emissions:14,767 tons CO2e (location based)
Scope 2 Emissions:24,174 tons CO2e (market based)
Scope 3 Emissions:4,521 tons CO2e
Renewable Energy Share:Not disclosed
Total Energy Consumption:478,812,105 kWh
Water Consumption:242,011 m3
Waste Generated:Not disclosed
Carbon Intensity:0.37 MJ/$ revenue

ESG Focus Areas

  • Inspiring Innovation
  • Protecting the Environment
  • Empowering People and Communities
  • Acting with Integrity

Environmental Achievements

  • LEED Gold Certification achieved for the expansion of global headquarters
  • 8,002 X-ray tubes accepted for salvage/recycling
  • 2,015 flat panel detectors returned for repair/upgrades
  • 60 metric tons of metal recycled
  • 43% waste diverted from landfill at manufacturing facilities (excluding Heerlen, Netherlands)

Social Achievements

  • Launched Varex Code of Conduct
  • Completed first materiality assessment
  • Launched a new Sustainability Strategy
  • Achieved a Net Promoter Score of 55
  • 3,987 safety training sessions involving 1,813 employees
  • 2,032 individuals received training (includes contractors and turnover)
  • 122 employees participated in the U.S. Higher Education Tuition Reimbursement Program, $387,014 invested
  • Women’s Interest Network launched

Governance Achievements

  • Established Sustainability Strategy
  • 1,960 individuals trained on Code of Conduct
  • 100% of issues reported to Ethics Hotline assigned to investigators
  • Updated Master Service Agreement and Contract terms to include provisions regarding human rights and conflict minerals

Climate Goals & Targets

Long-term Goals:
  • Achieve zero waste at manufacturing sites globally
  • Achieve carbon neutrality by 2030
  • Invest a percentage of profits in helping people develop their human potential, empowering youth, women, and minorities, and supporting health in communities where we operate
Medium-term Goals:
  • 100% of new products to meet at least two Sustainable Innovation Criteria by 2018
  • 100% of new products to meet three Sustainable Innovation Criteria by 2019
  • Decrease energy intensity by revenue by 5% by 2018
  • Reduce Scope 1 and Scope 2 GHG emissions by 5% by 2018
  • Improve customer response rate by Account Managers contacting 100% of active customers by 2018
  • Address 100% of feedback received in 2018 and yearly going forward
  • Unify global operations to a single quality management system by 2019
Short-term Goals:
  • Develop a Community Giving Strategy by 2017
  • Roll out Community Giving Program in the U.S. by 2018 and globally by 2019
  • Develop a scholarship program for underserved STEM students by 2017
  • Award scholarships to underserved STEM students by 2018 and going forward
  • Increase involvement through sponsorship and community events with STEM groups by 2018
  • Sign onto the UN Global Compact (UNGC) and review policies and processes against the UNGC reporting requirements by 2018
  • Incorporate sustainability and human rights measures into the Production Supplier Quality Program by 2018
  • Train the Strategic Sourcing Team on human rights, environmental impact, and conflict minerals by 2018

Environmental Challenges

  • Supply chain risks related to human rights, conflict minerals, and environmental compliance
  • Data gaps for non-U.S. manufacturing sites
  • Need to improve data reliability and quality
  • Need to further institutionalize sustainability processes
Mitigation Strategies
  • Formalizing supply chain management processes and priorities
  • Developing a strategic supplier audit program
  • Developing a conflict minerals policy and report
  • Planning to establish a formal governance structure in 2018, overseen by a Sustainability Committee

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Supplier quality program based on UN Global Compact principles
  • Updated Master Service Agreement incorporating human rights and conflict minerals issues
  • New Purchase Order Terms and Conditions including ethical conduct, anti-corruption, and other material issues

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: LEED Gold

Third-party Assurance: DNV GL

UN Sustainable Development Goals

  • 3, 5, 8, 9, 10, 11, 12, 13, 16, 17

The strategy has been informed by – and shapes our contribution to – the UN Sustainable Development Goals (SDGs) for 2030

Sustainable Products & Innovation

  • New products meeting Sustainable Innovation Criteria

Awards & Recognition

  • ChamberWest Chamber of Commerce 2017 Business of the Year
  • 2017 Utah Manufacturer of the Year Award

Reporting Period: 2019

Environmental Metrics

Total Carbon Emissions:21,456.45 tCO2e/year (Scope 1+2+3)
Scope 1 Emissions:8,099 tCO2e/year
Scope 2 Emissions:13,957 tCO2e/year
Scope 3 Emissions:1,433.45 tCO2e/year
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:3,898,232 m3/year
Waste Generated:1,144 tons/year
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Inspiring Innovation
  • Protecting the Environment
  • Empowering People and Communities
  • Acting with Integrity

Environmental Achievements

  • 7.6 metric tons of GHG emissions reductions from 2017 to 2019
  • 1,144 short tons of waste diverted from landfill
  • 9,437 tubes returned for recycling
  • 15% reduction in Scope 1 and 2 emissions vs. 2018
  • Installed high-efficiency windows in our Liverpool, NY, office

Social Achievements

  • No work-related fatalities in 2019
  • 74 employees enrolled in the Education Stipend program in 2019
  • $3,000 invested in scholarships with local high schools
  • Over 100 participants in the 2019 mentoring program
  • 29 interns accepted across global operations in 2019

Governance Achievements

  • 100% of reports to the Ethics Hotline investigated
  • 99% of employees trained on the Code of Conduct
  • 3 of our largest and key suppliers involved in the Supplier Engagement program
  • Globally, Varex’s facilities are MDSAP certified

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Achieve carbon neutrality
  • Reduce the need for raw materials by designing our products for recycling and reuse
  • Invest a percentage of profits in helping people develop their human potential, empowering youth, women, and minorities, and supporting health in communities where we operate
Short-term Goals:
  • Zero waste; work toward the circular economy
  • Continue to improve and reduce our water use across our global manufacturing operations
  • Develop a closed-loop water process
  • Innovate our products in collaboration with our customers to become more environmentally sustainable, guided by our Sustainable Innovation Criteria
  • Conduct life-cycle assessments (LCA) of our products to better understand their environmental impact

Environmental Challenges

  • Reducing GHG emissions across the supply chain, manufacturing, and distribution.
  • Managing the environmental impact of raw materials and waste.
  • Ensuring ethical sourcing and responsible supply chain practices.
  • Maintaining high product quality and safety standards.
  • Meeting evolving customer needs and expectations.
Mitigation Strategies
  • Developing product-transportation processes to favor shipping over air freight to reduce GHG emissions.
  • Transitioning toward a closed-loop manufacturing process to reduce resource waste.
  • Working with suppliers to identify ways to eliminate unnecessary packaging and use more recyclable alternatives.
  • Regularly auditing key suppliers to ensure compliance with ethical and environmental standards.
  • Implementing a Solutions in Sight™ program to optimize customer interactions and gather feedback for product development.

Supply Chain Management

Supplier Audits: 3 key suppliers audited in 2019

Responsible Procurement
  • Code of Conduct, ESG considerations in supplier selection and contracts, conflict mineral reporting

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Developing more energy-efficient products and processes

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: MDSAP

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

The report mentions alignment with UN Sustainable Development Goals but doesn't specify which goals.

Sustainable Products & Innovation

  • Energy-efficient detectors, products designed for recyclability and reuse

Awards & Recognition

  • Not disclosed

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:Not disclosed
Scope 1 Emissions:6,248 tCO2e
Scope 2 Emissions:13,161 tCO2e
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:220,990,668 MJ
Water Consumption:263,892 m3
Waste Generated:1150 tons
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Inspiring Innovation
  • Protecting the Environment
  • Empowering People and Communities
  • Acting with Integrity

Environmental Achievements

  • 24% reduction in GHG emissions from 2019 to 2020
  • 5,442 X-ray tubes accepted for recycling in 2020
  • 1,150 tons of waste recycled in 2020
  • 263,892 m3 of water used in 2020 (2019: 3,898,232 m3)

Social Achievements

  • Implemented COVID-19 pay policy for employees with the virus or in quarantine
  • Launched or expanded several wellbeing services for employees
  • Introduced an internal global Employee Net Promoter Score (ENPS)
  • Supported several local organizations through philanthropy
  • Supported a local orphanage in the Philippines

Governance Achievements

  • 100% of reports to the ethics hotline investigated
  • 96% of employees trained on the Code of Conduct
  • Developed a new ethical compliance training program

Climate Goals & Targets

Long-term Goals:
  • Zero manufacturing waste and carbon neutrality by 2030
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • COVID-19 pandemic impacted environmental efforts and required rapid adaptations to remote work
  • Supply chain disruptions due to the pandemic
Mitigation Strategies
  • Shifted to remote work where possible
  • Implemented enhanced health and safety measures
  • Accelerated production to meet increased demand for CT technologies
  • Implemented a “milk run” delivery process to optimize transport efficiency
  • Transitioned several products for the energy sector from analogue X-ray films to digital imaging processes

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Code of Conduct, ESG performance vetting of suppliers

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: Null

Third-party Assurance: DNV GL

UN Sustainable Development Goals

  • Not disclosed

Strategy is informed by the UN Sustainable Development Goals for 2030.

Sustainable Products & Innovation

  • X-ray tubes with Liquid Metal Bearing (LMB) technology
  • Generation 5 flat panel detectors (4343W)

Awards & Recognition

  • Not disclosed

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:16442 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:4195 tCO2e/year
Scope 2 Emissions:12247 tCO2e/year (location based), 11527 tCO2e/year (market based)
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:218425 MWh/year
Water Consumption:127,964 m3/year
Waste Generated:1202 tons/year
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Business ethics and Code of Conduct
  • Product quality and safety
  • Environmental impact of products and services
  • Employee recruitment, development, and training
  • Employee engagement, wellbeing, and retention
  • Supply chain management
  • Ethical marketing
  • Diversity, equity, and inclusion
  • Risk management

Environmental Achievements

  • Over 70% of waste diverted from landfill
  • Expanded program to recapture sulfur hexafluoride (SF6)
  • Expanded nitrogen generation plant to reduce liquid nitrogen deliveries
  • Identified opportunity to reuse methanol for groundwater decontamination

Social Achievements

  • Implemented new health and safety software for incident reporting
  • Supported more than 50 employees with over $190,000 in tuition reimbursement
  • Developed a new onboarding program
  • Enhanced ethical compliance training for managers
  • Announced expansion of paid time off (PTO) to 15 days per employee
  • 95%+ of employees completed training during 2022

Governance Achievements

  • Enhanced ethical compliance training for managers
  • Began gathering data on second and third-tier suppliers
  • Maintained Board diversity with 50% women or ethnically diverse members

Climate Goals & Targets

Long-term Goals:
  • Zero manufacturing waste
  • Carbon neutrality
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Reduce direct energy use
  • Improve indirect energy use
  • Reduce Scope 1 and 2 GHG emissions
  • Decrease emissions across global operations

Environmental Challenges

  • Inflationary pressures
  • Ongoing supply chain disruptions
  • Climate change impacts (physical and transition risks)
  • Potential restrictions on raw materials
  • Rising energy costs
  • Acute and chronic physical risks at various sites (flooding, hurricanes, water scarcity)
Mitigation Strategies
  • Supply chain localization strategy
  • Business continuity plans at all sites
  • SF6 recapture process
  • Increased use of ocean freight
  • Expanded nitrogen generation plant
  • Exploring alternative energy sources
  • Innovating to find more efficient production methods
  • Exploring opportunities to shift away from air freight

Supply Chain Management

Supplier Audits: Regular on-site audits of Tier 1 suppliers

Responsible Procurement
  • Third-party Responsible Business Code of Conduct Policy
  • Annual supplier training
  • Conflict Minerals Policy
  • Data collection on second and third-tier suppliers

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Flooding
  • Hurricanes
  • Rising sea levels
  • Water scarcity
Transition Risks
  • Regulatory changes
  • Restrictions on raw materials
  • Higher energy costs
Opportunities
  • Increased demand for products supporting EV battery technology
  • New markets in waste management
  • Expansion of industrial applications

Reporting Standards

Frameworks Used: GRI, TCFD, SASB

Certifications: ISO 9001, ISO 13485, ISO 27000

Third-party Assurance: Deloitte & Touche LLP (GHG emissions)

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • X-ray detector for EV battery inspections
  • Photon counting detectors

Awards & Recognition

  • Not disclosed

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:23487 tCO2e/year (Scope 1+2+3 estimated)
Scope 1 Emissions:11,571 tCO2e/year
Scope 2 Emissions:11,916 tCO2e/year (location-based)
Total Energy Consumption:228,248 GJ/year
Water Consumption:126,808 m3/year
Waste Generated:1315 tons/year
Carbon Intensity:26.4 grams CO2e/$ sales (location-based), 26.29 grams CO2e/$ sales (market-based)

ESG Focus Areas

  • Economic
  • Environmental
  • Social
  • Governance

Environmental Achievements

  • 5,617 end-of-life X-ray tubes returned with approximately 95% of the material recycled or reused
  • 59% waste diversion rate (775 tons recycled out of 1315 tons of waste)

Social Achievements

  • Implemented paternity leave in 2018 in addition to maternity leave; 100% of employees maintained their current role at an equivalent grade when they returned from leave
  • 48 employees participated in tuition reimbursement program, reimbursing $197K in tuition

Governance Achievements

  • Annual self-assessment of the board of directors
  • No incidents of non-compliance with laws and regulations in the social and economic areas

Climate Goals & Targets

Environmental Challenges

  • Data limitations due to Works Council restrictions (data only available for about 2,000 employees)
  • Difficulty in measuring mass and volume of materials due to a large and complicated supply chain
  • Lack of data on foreign government financial assistance
  • Ongoing development of methods to better monitor other Scope 3 emissions
  • Early phase of developing a more robust system to assess social impacts in the supply chain
Mitigation Strategies
  • Working to collect more comprehensive employee data in coming years
  • Working on developing full disclosure on all materials incorporated in products
  • Will look to disclose data on foreign government financial assistance next year
  • Continuing to develop methods to better monitor other Scope 3 emissions
  • Adding human rights criteria (including prevention of child labor and forced labor) into Supplier Quality program

Supply Chain Management

Supplier Audits: 100% of new suppliers screened using environmental criteria (REACH, WEEE, etc.)

Responsible Procurement
  • Master Services Agreements and purchase order terms and conditions include environmental criteria

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Third-party Assurance: ERM