EnerSys
Climate Impact & Sustainability Data (2021, 2022, 2023)
Reporting Period: 2021
Environmental Metrics
ESG Focus Areas
- Climate Change
- Energy Management
- Water Use & Management
- Waste Reduction and Recycling
- Workforce Health & Safety
- Diversity, Equity & Inclusion
- Talent Attraction & Retention
- Product Efficiency
- Product End-of-Life Management
- Materials Sourcing
- Supply Chain Management
- Board of Directors Structure & Diversity
- ESG Oversight & Management
Environmental Achievements
- Reduced GHG emissions despite a 9% increase in storage production.
- Reduced water intensity per kWh of storage production by more than 2% compared to 2020.
- Increased water recycling percentage to 12.6%
- Electrification of the lead heating process reducing GHG emissions and improving safety.
- Bellingham, WA facility uses clean energy generated by a 32.4kWh solar array.
- EMEA operations saved over 700,000 kWh by replacing computers and services with more efficient models.
Social Achievements
- Launched an online customer portal to make the battery recycling process more efficient.
- Reduced shrink wrap plastic usage by 43% in Richmond, Kentucky.
- Improved worker safety in Hostomice, Czech Republic by implementing new Gripper technology.
- Implemented changes at Bielsko-Biala, Poland plant to improve worker safety and ergonomics.
- Sumter, SC factory achieved four years with zero time-lost accidents.
- Launched a diversity engagement survey.
- Created a DEI Steering Committee.
- Launched Women in Leadership (WiL) BRG and Hispanic/Latinx Organization for Leadership BRG.
- Increased non-compulsory training completion rates by 23% in the past two years.
- Launched a career development tool within the talent management system.
- Donated approximately $1 million to charities focused on community development, education, and health.
Governance Achievements
- Board of Directors includes one woman and one man of color.
- All directors except the CEO are independent.
- Established a robust enterprise risk management program.
- Implemented a Code of Business Conduct and Ethics with a confidential reporting mechanism.
Climate Goals & Targets
- Establish a robust climate goal aligned with stakeholder expectations.
- Reduce energy intensity per kWh produced by 25% by 2030 (compared to 2020).
- Reduce water intensity per kWh of storage produced by 25% by 2030 (compared to 2020).
- Improve female representation at leadership level to 20% by 2025.
- Increase multicultural talent representation at U.S. leadership level to 25% by 2025.
- Become recognized by at least 3 global indexes as a leading employer by 2025.
- Improve safety metrics by 8% in 2022.
Environmental Challenges
- Climate change's potential to disrupt the global economy and supply chains.
- Supply chain disruptions due to limited material supply and geopolitical risks.
- Responsible end-of-use processes for lithium-ion batteries.
- Attracting and retaining a diverse and talented workforce.
- Managing risks associated with the use of critical minerals (e.g., cobalt).
Mitigation Strategies
- Developing products that mitigate climate change effects.
- Implementing policies to manage supply chain impacts.
- Partnering with industry groups to develop lithium-ion battery recycling infrastructure.
- Providing competitive pay and benefits, development opportunities, and a safe workplace.
- Sourcing cobalt from suppliers committed to the OECD Due Diligence Guidance.
- Investing in recycling and a circular economy.
Supply Chain Management
Supplier Audits: Periodic audits conducted on environmental compliance, health and safety, product safety, conflict minerals, workplace labor rights, and corporate social responsibility.
Responsible Procurement
- Code of Ethics
- Environmental stewardship requirements
- Workplace labor rights requirements
- Diversity requirements
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
Transition Risks
- Regulatory changes
- Market shifts
Opportunities
- Development of energy-efficient products
- Expansion of renewable energy usage
Reporting Standards
Frameworks Used: GRI, SASB, UNGC, UN SDGs
Certifications: ISO 14001 (16 facilities), ISO 45001 (7 facilities), SA8000 (Shenzhen facility), Call2Recycle
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- SDG 7: Affordable and Clean Energy
- SDG 10: Reduced Inequalities
- SDG 13: Climate Action
EnerSys products and initiatives contribute to these goals through renewable energy solutions, diversity and inclusion programs, and emissions reduction efforts.
Sustainable Products & Innovation
- NexSys® PURE TPPL Batteries
- NexSys® iON: Modular Lithium Power
- OutBack Power™ Mojave Platform
- Hawker Flex® Modular Lithium-ion Battery
- ODYSSEY® Batteries
Awards & Recognition
- Chattanooga Regional Manufacturers Association (CRMA) 2021 Manufacturers Excellence Award for Energy/Environment (Hawker Powersource brand)
- ATIS Achievement Award (Ed Badon Jr.)
Reporting Period: 2022
Environmental Metrics
ESG Focus Areas
- Climate Change
- Diversity, Equity & Inclusion
- Workforce Health & Safety
- Community Engagement
- Governance
Environmental Achievements
- Reduced absolute Scope 1 and Scope 2 greenhouse gas emissions by over 4%
- Reduced Scope 1 emissions by 7.6% since CY2021 and over 24% since 2019
- Reduced energy intensity by 4.8% (3% increase in production, 1% decrease in energy use)
- Reduced water intensity by 1.4% year on year
Social Achievements
- Increased employee Net Promoter Score (eNPS) by 11 points
- Launched two new Business Resource Groups (BRGs): Hispanic/Latinx Organization for Leadership in Action (HOLA) and Asian Heritage Association (AHA)
- Increased female representation at the leadership level to 12.5%
- Donated approximately $1 million to charities
Governance Achievements
- Published first Task Force on Climate-Related Financial Disclosures (TCFD) Report
- Established a Climate Action Plan (CAP) Committee
- Maintained zero fatal injuries
Climate Goals & Targets
- Achieve carbon neutrality by 2040
- Reduce water intensity per kWh of storage produced by 25% by 2030
- Improve female representation at the leadership level from 9% to 20%
- Improve representation of multicultural talent in the US at the leadership level from 16% to 25%
Environmental Challenges
- Russia's aggression in Ukraine resulting in increased energy prices and suspension of operations in Russia
- Maintaining multicultural talent representation
Mitigation Strategies
- Prioritized employee safety in response to the Ukraine conflict
- Implemented measures to attract and retain talent to improve multicultural representation
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Sustainable Procurement
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Regulatory changes, market shifts
Opportunities
- Development of energy-efficient products
Reporting Standards
Frameworks Used: GRI, SASB, TCFD
Certifications: ISO 45001 (seven facilities), SA8000 (Shenzhen, China facility)
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- SDG 7 (Affordable and Clean Energy)
- SDG 10 (Reduced Inequalities)
- SDG 13 (Climate Action)
EnerSys' mission to 'Power the Future – Everywhere for Everyone' aligns with these SDGs.
Sustainable Products & Innovation
- Energy storage solutions that support decarbonization
Awards & Recognition
- Newsweek’s America’s Most Responsible Companies
- Great Place to Work (Argentina, Brazil, China)
Reporting Period: 2023
Environmental Metrics
ESG Focus Areas
- Climate Change
- Diversity, Equity & Inclusion
- Governance
- Supply Chain Sustainability
- Resource Efficiency
Environmental Achievements
- Reduced Scope 1 GHG emissions by 4.2% since 2022 and 25% since 2019.
- Completed first Scope 3 GHG emissions inventory.
- Reduced energy intensity per kWh produced by 15% since 2020 (5 US plants).
- Reduced water intensity per kWh of storage produced by 6% since 2020.
- Reduced water usage at Tijuana plant by an estimated 4,400 gallons per day through water reuse project.
- Reduced energy consumption at Bielsko, Poland factory by an estimated 367 MWh/year through insulation upgrades.
Social Achievements
- Achieved 18 country recognitions as a Great Place to Work in 2023.
- Awarded Top Employer certification for 2023-2024 in Poland.
- Earned 2024 Military Friendly Employer Designation.
- Launched three new Business Resource Groups (BRGs).
- Increased employee engagement survey participation to 65% with 66% positive feedback.
Governance Achievements
- Established ESG Steering Committee and Climate Action Plan Committee.
- Implemented a goal directly related to GHG emission reduction targets in the company incentive plan.
- Sustainability-related performance affects 10% of executive compensation.
Climate Goals & Targets
- Achieve Scope 1 GHG emissions net zero by 2040.
- Achieve Scope 2 GHG emissions net zero by 2050.
- Reduce water intensity per kWh of storage produced by 25% by 2030 (compared to 2020).
- Reduce GHG emissions of French supply chain operations by 12.5% by 2025 (compared to 2022).
- Improve multicultural talent representation at leadership level in the U.S. to 25% by 2025.
- Improve female representation at leadership level to 20% by 2025.
- Reduce energy intensity per kWh of storage produced by 25% by 2030 (compared to 2020).
Environmental Challenges
- Reducing carbon footprint across operations and supply chain.
- Enhancing resource efficiency and minimizing waste generation.
- Ensuring ethical sourcing throughout the supply chain.
- Addressing water scarcity in certain regions.
- Managing climate-related risks (physical and transition).
Mitigation Strategies
- Transitioning to electricity to power manufacturing operations.
- Investing in renewable energy projects.
- Implementing energy-efficient technologies and processes.
- Improving water recycling and reuse.
- Conducting comprehensive resilience analysis and quantifying risks and opportunities.
- Engaging with suppliers on ESG issues through surveys and audits.
Supply Chain Management
Supplier Audits: Number not specified; audits conducted by internal team or third parties.
Responsible Procurement
- Code of Conduct
- Supplier sustainability requirements
- ESG survey
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather
- Flooding
- Sea level rise
Transition Risks
- Increased energy costs
- Carbon pricing
- Supply chain disruptions
Opportunities
- Increased demand for energy storage products
- New markets and customers
- Innovation in renewable energy technologies
Reporting Standards
Frameworks Used: GRI, SASB, TCFD, UNGC, ESRS, IFRS
Certifications: ISO 45001 (7 facilities), SA8000 (Shenzhen facility), Call2Recycle
Third-party Assurance: Not disclosed
UN Sustainable Development Goals
- SDG 7: Affordable and Clean Energy
- SDG 10: Reduced Inequalities
- SDG 13: Climate Action
EnerSys' products and operations contribute to these goals through renewable energy solutions, diversity and inclusion initiatives, and GHG emissions reduction efforts.
Sustainable Products & Innovation
- Thin Plate Pure Lead technology
- Batteries for electric vehicles and renewable energy storage
Awards & Recognition
- Energy Efficiency Initiative of the Year (Environmental Finance’s Sustainable Company Awards)
- Department of Energy’s Better Practice Award (for EOS)
- Department of Energy’s Better Project Award (for cube cutting technology)
- Top Ten Company award (United Way of Berks County)
- Military Friendly Employer Award 2024