Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Working Conditions
• Health and Safety
• Ethical Supply Chain
• Quality Control
• Product Safety
• Anti-corruption
• Community Involvement

Environmental Achievements

• Reduced carbon emissions by 1,744 tons
• Created energy savings by using recycled water, replacing lighting with LEDs, installing energy-conserving boilers, and replacing energy-consuming motors

Social Achievements

• Increased minimum monthly base salary for employees at AIP
• Reviewed salaries of employees for potential upward adjustments
• Increased seniority pay and meal subsidies
• Initiated an Invention Reward Policy
• Reduced work-related injuries by 4% from 2014
• Offered numerous amenities and social activities for employees at AIP
• Actively engaged with the community through internship programs (hiring up to 50 interns per year), skills-based training, and employee volunteerism

Governance Achievements

• Adopted a comprehensive Conflict Minerals Policy
• Established and integrated a Quality Management System (QMS)
• Implemented detailed product recall procedures
• Established a policy to encourage reporting of misconduct without fear of reprisal (2010)

Climate Goals & Targets

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Comprehensive Conflict Minerals Policy

Climate-Related Risks & Opportunities

Awards & Recognition

• Intertek Solutions Think Green Initiative (TGI) Achievement Award (2010)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced carbon emissions from electricity by 2% from 2014 (third consecutive year of reductions)
• Reduced annual carbon emissions from water by 34% in 2015
• Prevented over 21,000 tons of carbon from being released into the atmosphere in 2016 at AIP
• AIP received the Dongguan Energy Saving Demonstration Site & Social Responsibility Honor Unit in 2016
• AIP received a Greenhouse Gas Verification for meeting the requirements of ISO 14064-1:2006
• Various energy efficiency improvements at AIP, TTIFC, and Milwaukee Tool facilities (e.g., LED lighting, HVAC system upgrades, motion sensor lighting)

Social Achievements

• Launched various employee training programs (Learn TTI, Floor Care University, leadership development programs)
• Implemented a Policy against Slavery and Human Trafficking
• Established Special Protection for Juvenile Workers in 2010
• Engaged employees through social, philanthropic, and wellness activities (e.g., community service projects, wellness programs)
• Created a Global Product Safety Director position
• Implemented comprehensive safe work practices and health and safety programs

Governance Achievements

• Established accountability standards and monitoring procedures to ensure compliance with policies
• Designated TTI Legal and Compliance Department as a point of contact for policy violations
• Implemented policies to prevent corrupt practices (Antitrust Compliance, Code of Ethics and Business Conduct), with mandatory employee training

Climate Goals & Targets

Environmental Challenges

• Minimizing environmental impact from global operations
• Managing social risks in the supply chain
• Ensuring compliance with evolving environmental regulations (e.g., EU Ecodesign and Energy Labelling regulations)

Mitigation Strategies

• Continuous improvement initiatives to minimize environmental impact and efficiently manage resources
• Supplier Code of Conduct and Conflict Minerals Policy
• Supplier audits and training
• Investment in R&D to meet and exceed environmental regulations (e.g., Vax Ltd. vacuum cleaners)

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• TTI Supplier Code of Conduct, Conflict Minerals Policy

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO 14064-1:2006 (AIP)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• RYOBI ONE PLUS+ and MILWAUKEE interchangeable batteries to reduce battery waste

Awards & Recognition

• Dongguan Energy Saving Demonstration Site & Social Responsibility Honor Unit (AIP)

Environmental Metrics

ESG Focus Areas

• Human Rights
• Labor
• Environment
• Anti-corruption

Environmental Achievements

• AIP reduced electricity intensity by 18%
• AIP reduced GHG intensity by 22% from 2017
• TTI HK: 7% reduction in greenhouse gas (GHG) intensity per employee
• TTI Canada reduced air emissions by 4% by switching to more efficient engines for its workforce vehicles
• Eliminated all plastic packaging bands in our operations
• Reduced electricity consumption by 695,364 kWh, avoiding 347 tonnes of CO2 equivalent GHG emissions and saving US$362,000

Social Achievements

• Zero work-related fatalities in 2018
• TTI employees engaged in 57,963 hours of online training on Learn TTI
• Over 12,000 volunteer hours in communities
• Launched weekly Green Monday program at TTI HK to encourage healthier vegetarian meals

Governance Achievements

• Developed a Sustainability Strategy and Implementation Plan aligned with UN SDGs
• Formalized the role of our ESG Working Committee
• Zero reported cases of corruption within TTI Group
• Online Compliance Platform implemented across all business units globally for suppliers

Climate Goals & Targets

Environmental Challenges

• Measuring environmental performance data continues to be challenging as TTI has many facilities around the world and an expanding geographical presence year on year.
• Reducing absolute energy consumption at a factory level is challenging as our production volumes continue to grow

Mitigation Strategies

• Improving both the collection process and quality of our data and, whenever possible, engaging with external parties in the process.
• Focusing on improving efficiency instead of reducing absolute energy consumption

Supply Chain Management

Supplier Audits: Regular basis; new suppliers undergo screening and audit before engagement; audited every 12 to 18 months if previous audit was acceptable; more frequent audits for lower ratings.

Responsible Procurement

• Business Partner Code of Conduct
• Conflict Minerals Policy
• Policy Against Slavery and Human Trafficking
• Online Compliance Platform

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN SDGs, HKEX ESG Guide Content Index

Certifications: ISO 9001, QC 080000

UN Sustainable Development Goals

• 14 of the 17 UN SDGs

TTI’s Sustainability Strategy aligns with 14 of the 17 UN SDGs most relevant to TTI’s operations.

Sustainable Products & Innovation

• Cordless tools with interchangeable batteries

Environmental Metrics

ESG Focus Areas

• Governance
• Environment
• Social
• Supply Chain Management

Environmental Achievements

• -39% Reduction in product packaging materials
• -6% Reduction of TTI AIP scope 1 and 2 GHG emissions intensity
• -2% and -15% Reduction of TTI AIP electricity and natural gas intensity
• +200% Increase in battery collection at TTI’s North American sites

Social Achievements

• Zero Cases of child labour
• 149,780 Training hours (on e-learning)
• +63% Increase in in-kind and cash donation contributions
• +1.5% Increase in ratio of female to male employees
• 1,475 Graduates in our Leadership Development Program (LDP)

Governance Achievements

• Zero Public legal cases of corruption were brought against TTI Group
• Zero Cases of identified leaks, theft or loss of customer data
• Zero High-risk cases in sourcing of conflict minerals or cobalt
• Zero Work-related fatality cases
• Greenstone Global implementation of ESG data software
• Responsible Mineral Initiative (RMI) Membership
• Cobalt Procurement Policy launched

Climate Goals & Targets

Supply Chain Management

Responsible Procurement

• Cobalt Procurement Policy

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

UN Sustainable Development Goals

• 14 of the 17 UN’s Sustainable Development Goals (SDGs)

Environmental Metrics

ESG Focus Areas

• clean technology
• environmental preservation
• reduction of absolute Scope 1 and Scope 2 Greenhouse Gas (GHG) emissions
• Science Based Target Initiatives (SBTI) commitment
• governance

Environmental Achievements

• 8% improvement in emission intensity in 2023, leading to a total reduction of 8k tonnes of CO2e emissions

Social Achievements

• TTI Leadership Development Program successfully hired over 10,500 LDPs
• Breakthrough Leadership senior management training program

Governance Achievements

• ESG Working Committee with the guidance of the ESG Executive Committee and the Board of Directors has continued to implement our sustainability strategy and monitor activities and ESG performance against our goals

Climate Goals & Targets

Environmental Challenges

• significant increases in interest rates resulting in higher interest expense
• significant US$987 million inventory reduction

Mitigation Strategies

• significant inventory reduction of US$987 million
• strategic investments and promotional activities to drive inventory reductions
• believe we can continue reducing inventory days on hand in 2024 and the years ahead

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: UN Sustainable Development Goals

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

continued to develop our Sustainability Strategy and Implementation Plan to align our actions and goals globally with the United Nations Sustainable Development Goals

Sustainable Products & Innovation

• ONEPWR cordless carpet cleaner
• RYOBI 60-Watt Foldable Solar Panel

Awards & Recognition

• three Supplier of the Year awards from The Home Depot in 2023