Climate Change Data

Energy Recovery, Inc.

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:17158 tCO2e/year (Scope 1+2 Market Based)
Scope 1 Emissions:1606 tCO2e/year
Scope 2 Emissions:552 tCO2e/year (Market-Based)
Scope 3 Emissions:14150 tCO2e/year
Renewable Energy Share:21% in FY 2022
Total Energy Consumption:49474 GJ/year
Carbon Intensity:13 MT CO2e / $M Revenue in FY 2022

ESG Focus Areas

  • Climate Change
  • Energy Management
  • Employee Health & Safety
  • Materials Sourcing
  • Governance

Environmental Achievements

  • Avoided electricity consumption from all Energy Recovery products (excluding pumps) sold and shipped: 36.2 TWh/y in FY 2022. This is associated with avoiding approximately 17.2 million metric tons of carbon emissions per year.
  • Increased recycled alumina powder used in PX production to 40% in FY2022

Social Achievements

  • Retention rate of 93% in FY 2022
  • New hire turnover rate of 8% in FY 2022

Governance Achievements

  • Board of Director Female Representation increased to 43% in FY 2022
  • Board of Director People of Color Representation increased to 29% in FY 2022

Climate Goals & Targets

Environmental Challenges

  • Supply chain disruptions (implied by the need for alternative sourcing strategies)
  • Solar panel downtime in Katy, TX due to inverter issues
Mitigation Strategies
  • Purchasing 100% renewable electricity for all sites mid-year 2022

Supply Chain Management

Responsible Procurement
  • Conflict mineral sourcing policy

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD, SASB, GRI

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:11,023 tCO2e (market-based)
Scope 1 Emissions:1,731 tCO2e
Scope 2 Emissions:204 tCO2e (market-based)
Scope 3 Emissions:9,088 tCO2e
Renewable Energy Share:83%
Total Energy Consumption:51,900 GJ
Water Consumption:7.4 Million Liters
Waste Generated:Not disclosed
Carbon Intensity:15 MT CO2e/$1M revenue (2023)

ESG Focus Areas

  • Climate Change
  • Employee Well-being and Safety
  • Product Quality and Safety
  • Governance

Environmental Achievements

  • Reduced Scope 1 and 2 GHG emissions intensity by 48% from 2021 baseline to 15 MT CO2e per $1M of product revenue in 2023.
  • Achieved over 80% reduction in scope 2 emissions compared to 2021 baseline through transition to 100% renewable electricity at all three facilities.
  • Avoided 19.7 million metric tons of CO2 annual emissions across all products in 2023.

Social Achievements

  • Maintained retention rate above 90% (96% in 2023).
  • Maintained new hire turnover rate below 10% (8% in 2023).
  • 100% of new hires received sustainability training.
  • Achieved 96% of planned annual safety trainings.
  • Reduced Total Recordable Incident Rate to 2.39.

Governance Achievements

  • Completed quantitative climate scenario analysis, aligning with TCFD recommendations.
  • Established a cross-functional Sustainability Management Committee (SMC) to oversee sustainability strategy and risk management.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Reduce Scope 1 and 2 GHG emissions intensity 65% by 2026 from 2021 baseline
Short-term Goals:
  • Double emissions reductions from Energy Recovery products by end of 2025 vs. 2019 baseline

Environmental Challenges

  • Increased cost of raw materials (especially non-ferrous metals) and energy.
  • Acute physical risks to facilities (blackouts, flooding, coastal events, earthquakes).
  • Chronic physical risks to facilities (rising sea levels, temperature rise, water stress).
  • Acute and chronic physical risks to employees (wildfires, extreme heat, droughts).
  • Downstream market risks related to customer exposure to physical climate risks.
Mitigation Strategies
  • Emergency preparedness processes and teams.
  • Inventory management strategy.
  • Insurance coverage.
  • Diversification of energy sources.
  • Emissions footprint reduction strategies.
  • Market intelligence and monitoring.
  • Supply chain management diversification.
  • Operational efficiency improvements.
  • Workforce protection measures (temperature-controlled facilities, work-from-home options).
  • Workforce health and safety initiatives (ISO 45001 compliance).
  • Business diversification (geographically and by market).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Conflict mineral sourcing policy

Climate-Related Risks & Opportunities

Physical Risks
  • Blackouts
  • Flooding
  • Coastal events
  • Earthquakes
  • Rising sea levels
  • Temperature rise
  • Water stress
  • Wildfires
Transition Risks
  • Increased raw material and energy costs
  • Substitution of products with more efficient options
Opportunities
  • Energy source diversification
  • New market entry (desalination, wastewater, CO2 refrigeration)
  • Shift in customer preferences (cost of energy, water access)
  • Development of new products/services through R&D

Reporting Standards

Frameworks Used: SASB, TCFD, GRI

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Pressure exchanger technology for desalination, wastewater, and CO2 refrigeration

Awards & Recognition

  • Not disclosed