Lincoln Electric Holdings, Inc.
Climate Impact & Sustainability Data (2022, 2023)
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:186,860 tCO2e
Scope 1 Emissions:66,959 tCO2e
Scope 2 Emissions:119,901 tCO2e
Scope 3 Emissions:Not disclosed
Renewable Energy Share:<1%
Total Energy Consumption:2,200,995 GJ
Water Consumption:913,149 m3
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed
ESG Focus Areas
- Safety
- Climate Change (GHG emissions, energy, water, waste)
- Employee Development & Engagement
- Diversity, Equity & Inclusion
- Supply Chain Responsibility
- Corporate Governance
Environmental Achievements
- 18.9% reduction in Scope 1 and 2 GHG emissions (2022 vs 2018)
- 1% reduction in energy intensity (2022 vs 2018)
- 75.9% recycling rate
- 95.2% landfill avoidance rate
- 25% reduction in water usage (2022 vs 2018)
Social Achievements
- 15.8% reduction in Total Recordable Case Rate (TRCR) (2022 vs 2018)
- Launched TalentLaunch, a global two-year blended learning journey for emerging talent.
- Expanded training and development resources
- Work Appropriately flexible work program launched globally.
- Supported employee resource groups (ERGs)
Governance Achievements
- 100% of salaried employees completed required online compliance training.
- Over 3,500 global employees attended live training sessions on various compliance topics.
- Implemented a new enterprise-wide Learning Management System for EHS training.
Climate Goals & Targets
Long-term Goals:
- Not disclosed
Medium-term Goals:
- Reduce Scope 1 and 2 GHG emissions by 10% by 2025 (vs. 2018 baseline)
- Reduce energy intensity by 16% by 2025 (vs. 2018 baseline)
- Achieve 80% recycling rate by 2025
- Achieve 97% landfill avoidance rate by 2025
- Reduce water use by 14% by 2025 (vs. 2018 baseline)
Short-term Goals:
- Reduce TRCR by 52% by 2025 (vs. 2018 baseline)
Environmental Challenges
- Reducing GHG emissions further
- Improving energy intensity
- Increasing recycling and landfill avoidance rates
- Maintaining a strong safety record
- Attracting and retaining diverse talent
Mitigation Strategies
- Continued investment in energy efficiency projects
- Implementation of waste reduction initiatives
- Rigorous safety and health program
- Diverse talent sourcing strategies and partnerships
- Employee development and engagement programs
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Supplier Code of Conduct
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Not disclosed
Opportunities
- Development of energy-efficient products and solutions supporting clean energy transition.
Reporting Standards
Frameworks Used: SASB, GHG Protocol
Certifications: ISO 14001 (66% of manufacturing sites, 100% of major sites), ISO 45001 (30% of manufacturing sites)
Third-party Assurance: Bureau Veritas UK Ltd (Limited Assurance for Scope 1 and 2 GHG emissions)
UN Sustainable Development Goals
- Not disclosed
The report mentions alignment with UN SDGs but doesn't specify which goals.
Sustainable Products & Innovation
- Energy-efficient welding machines (Powertec™ i500s)
- Cobot welding solutions (Cooper™)
- Precision Power Laser™ Solution for EV battery trays
- 150kW DC fast charger (Velion™)
Awards & Recognition
- Not disclosed
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:193,088 tCO2e/year
Scope 1 Emissions:69,164 tCO2e/year
Scope 2 Emissions:123,924 tCO2e/year
Renewable Energy Share:4.2%
Total Energy Consumption:2,195,376 GJ
Water Consumption:904,542 m3/year
ESG Focus Areas
- Safety
- Greenhouse Gas Emissions
- Energy Intensity
- Recycling
- Landfill Avoidance
- Water Usage
- Climate Change
- Employee Health & Safety
- Ethical Corporate Behavior
- Waste & Hazardous Materials Management
- Workforce Management
- Employee Diversity and Inclusion
- Customer Privacy/Data Security
- Energy Management
Environmental Achievements
- Reduced absolute Scope 1 and 2 GHG emissions by 16% compared with the 2018 baseline
- Reduced energy intensity by 10% compared with the 2018 baseline
- Achieved a 76.5% waste recycling rate
- Achieved a 94% landfill avoidance rate
- Reduced water usage by 25% compared to the 2018 baseline
Social Achievements
- 38% reduction in Total Recordable Cases (TRCR) from 2018 to 2023
- 7.1% reduction in Days Away, Restricted, & Transferred (DART) from 2018 to 2023
- Launched a 12-month pilot program to enhance leadership skills of senior managers, with 80% participation rate.
- Global completion rate of 85.6% for the employee Experience Survey, with 76% of employees indicating they would recommend the company as a good place to work.
Governance Achievements
- Completed first Environmental, Social & Governance (ESG) materiality assessment
- Completed climate scenario analysis aligned with the Task Force on Climate-related Financial Disclosures (TCFD)
- 100% of salaried employees completed required online compliance training courses, and more than 5,700 global employees attended live training sessions.
Climate Goals & Targets
Medium-term Goals:
- Reduce Scope 1 and 2 GHG emissions by 10% by 2025
Short-term Goals:
- Reduce water consumption by 14% by 2025
- Achieve a 97% landfill avoidance rate by 2025
- Achieve an 80% recycling rate by 2025
Environmental Challenges
- Supply chain disruptions
- Climate-related risks (physical and transition)
- Declining personal disposable income of consumers
- Shifting customer and product base
- Stress impacts on labor productivity
- Labor market disruption
- Raw material scarcity
- Stakeholder expectations for decarbonization
- Declining employee health
- Increased disruption and costs in the supply chain and operations
- Energy instability
- Declining regional labor productivity
- Uninsurable assets
- Water shortages across the value chain
Mitigation Strategies
- Investing in energy efficiency projects
- Implementing more automation
- Upskilling employees and attracting technical talent
- Streamlining regional processes
- Developing strategic responses to climate-related risks and opportunities
- Pivoting to renewables
- Building collaborations
- Decarbonizing the business
- Product and process innovation
- Integrating low-emission resources
- Enhancing utilization of recycled materials
Supply Chain Management
Responsible Procurement
- Supplier Code of Conduct
Climate-Related Risks & Opportunities
Physical Risks
- Heatwaves
- Hurricanes
- Wildfires
- Water/air pollution
- Supply chain disruptions
- Damage to facilities
- Operational disruptions
- Uninsurable assets
- Water shortages
Transition Risks
- Rising compliance costs
- Decarbonization requirements
- More expensive greener alternatives
- Declining personal disposable income
- Shifting customer and product base
- Stress impacts on labor productivity
- Labor market disruption
- Raw material scarcity
- Stakeholder expectations
- Declining regional labor productivity
Opportunities
- Local, shorter supply chains
- First-mover advantage
- Resource efficiency
- Upskilling employees
- Streamlining regional processes
- Infrastructure build
- Electric vehicles
- Meeting the evolving energy market
- Sustainable inputs
- Recycled inputs
- Pivoting to renewables
- Product and process innovation
Reporting Standards
Frameworks Used: SASB, TCFD
Certifications: ISO 14001, ISO 45001
Third-party Assurance: Bureau Veritas UK Ltd.
UN Sustainable Development Goals
- Goal 7 (Affordable and Clean Energy)
- Goal 9 (Industry, Innovation and Infrastructure)
- Goal 13 (Climate Action)
Our efforts align with the UN Sustainable Development Goals through investments in renewable energy, sustainable products, and community engagement initiatives.
Sustainable Products & Innovation
- Ranger Air 260MPX
- Magnum Pro Fume Gun
- Weld-Pak 180i
- Laser-Pak PPL
- Frontier 400X
- Power Wave R450 Rapid
- Velion EV Charger