Climate Change Data

Environmental Metrics

ESG Focus Areas

• Managing our environmental impacts
• Employee health and safety
• Diversity & inclusion
• Community investment
• Supply chain management
• Board and executive compensation management

Environmental Achievements

• Generated approximately 76,944 kilowatt hours of electricity at our Clifton Park facility in 2020 using our own fuel cell systems
• Increased green hydrogen generation targets to produce 500 tons per day by 2025 and 1,000 tons per day before 2028
• Established a pilot recycling program with ELEMET, reducing landfill to only 0.13% of product weight.

Social Achievements

• Increased green jobs by 427 (49.7% increase year over year). Zero jobs were eliminated due to COVID-19.
• Initiated four key priorities during COVID-19: maintain employee and employee family safety; provide customer support to those providing essential services; provide local support; continue to remain focused on the long-term strategic objectives of the Company.
• Supported employees to donate a total of $42,727.24 to local charities.
• 137 Veterans of the U.S. Armed Services working for the company (54% increase from 2019).

Governance Achievements

• Contracted a third party to conduct a materiality assessment to identify critical ESG topics.
• Established a Supplier Code of Conduct with twelve principles and by-laws for suppliers.

Climate Goals & Targets

Environmental Challenges

• Risk to product input supply due to market shortages and material issues related to critical materials (platinum, graphite, etc.)

Mitigation Strategies

• Working on secondary sources for critical materials.
• Putting Supply Agreements into place where necessary.
• Engineering efforts to reduce material loading in products.
• Recovering and recycling materials, both at the supplier and with third-party recovery.
• Design for manufacturing/recycling efforts.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Opportunities

• Development of green hydrogen solutions

Reporting Standards

Frameworks Used: GRI

Sustainable Products & Innovation

• Green hydrogen solutions and fuel cell products

Awards & Recognition

• Best Places to Work in the New York Capital Region (6 times)
• Community Impact Award
• Healthiest Employers (2020)

Environmental Metrics

ESG Focus Areas

• Managing our environmental impacts: Energy management, Development of low/no carbon solutions, Product end of life management, Product efficiency
• Social: Employee health and safety, Diversity & inclusion, Community investment
• Governance: Supply chain management, Board and executive compensation management

Environmental Achievements

• Successfully completed quantifying the Carbon Intensity Life cycle Assessment for our material handling fuel cells
• Three power purchase agreements (PPA) will position the company to utilize renewable energy at three hydrogen production sites starting in 2022.
• Initiatives for planned California and Texas hydrogen facilities to build tertiary water treatment plants to produce recycled water.

Social Achievements

• Achieved an exemplary workforce health and safety record with a Total Recordable Incident Rate (TRIR) of 1.3 and zero fatalities in 2021.
• Provided employees with more than 19,500 hours of training.
• Enhanced focus on increasing the racial, ethnic, and gender makeup of the workforce.
• Exceeded goal of facilitating more than $50,000 in direct employee contributions to United Way.

Governance Achievements

• Added Kimberly Harriman and Kyungyeol Song to the Board in 2021, and Jean A. Bua and Kavita Mahtani in 2022.
• Board of Directors is currently comprised of 34% women.
• Implemented new technologies in 2021 to improve the ESG reporting process.

Climate Goals & Targets

Environmental Challenges

• Understanding the environmental impacts of product manufacturing processes and life cycles.
• Quantifying the carbon footprint of products.
• Managing cybersecurity risks as the business grows.

Mitigation Strategies

• Project to quantify carbon footprint for each product.
• Cybersecurity strategy includes preventative measures, proactive monitoring, employee education, and business continuity planning.
• Contracted a leading third-party cybersecurity firm to periodically assess IT environment and cybersecurity posture.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and green hydrogen solutions.

Reporting Standards

Frameworks Used: SASB standards for the Fuel Cells and Industrial Batteries industry

Sustainable Products & Innovation

• Green hydrogen solutions, PEM fuel cells, electrolyzers

Awards & Recognition

• Named one of the “Best Places to Work” by the Albany Business Review for the seventh time in 2021.

Environmental Metrics

ESG Focus Areas

• Managing environmental impacts (energy management, low/no carbon solutions, product end-of-life management, product efficiency)
• Social (employee health and safety, diversity & inclusion, community investment)
• Governance (supply chain management, board and executive compensation management)

Environmental Achievements

• Developed a GHG Inventory in line with GHG Protocol and set a baseline for 2022 emissions.
• Started collecting water usage data.
• Commissioned first green hydrogen plant in Georgia.
• Launched a joint venture with Olin Corporation to create a 15-ton-per-day hydrogen plant in North America.
• Agreement to build a large-scale green hydrogen generation plant at the Port of Antwerp-Bruges.
• Commissioned the world’s first floating offshore green hydrogen production site in France.
• $2.1B billion portfolio sale and green hydrogen supply agreement with Amazon.

Social Achievements

• Increased diverse workforce to more than 3,300 employees.
• Hired a Diversity, Equity and Inclusion Director.
• Launched a paid parental leave program.
• Achieved a 78 Engagement Index in employee survey.

Governance Achievements

• Added Jean A. Bua and Kavita Mahtani to the Board of Directors.
• Conducted a materiality assessment with PricewaterhouseCoopers.

Climate Goals & Targets

Environmental Challenges

• Increased prices in raw materials (climate transition risk)
• Enhanced emissions-reporting obligations
• Mandates on and regulation of existing products and services
• Exposure to litigation
• Unsuccessful investment in new technologies
• Costs to transition to lower emissions technology
• Market uncertainty
• Increased cost of raw materials
• Increased cost of renewable energy implementation
• Shifts in consumer preferences
• Stigmatization of sector
• Increased stakeholder concern or negative feedback
• Increased severity of extreme weather events
• Changes in precipitation patterns & extreme variability in weather patterns
• Rising sea levels

Mitigation Strategies

• Investments in renewable energy PPAs
• Implementing new recycling technology
• Diversifying supply chain reliance
• Calculated GHG emissions for 2021 and 2022
• Evaluating technology enhancements for emissions calculations
• Actively advocating for and helping draft green hydrogen legislation
• Most investments go to scaling up hydrogen production and R&D
• Purchasing raw materials in advance and storing them
• Regional diversity and various mining firms
• Sourcing RECs and (v)PPAs as needed
• Sensitivity testing
• Developing green hydrogen production infrastructure, supply chain regional diversification, and renewable energy farms
• Staying transparent in the marketplace, educating and promoting green hydrogen technology
• Business plan to produce green hydrogen at a scalable level
• Highly effective response scenarios to minimize production shutdown
• Preventive system for monitoring fuel cell operations
• Investment in high-pressure tankers
• Holistic approach in supply chain management
• Regional acquisition and partnerships

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• EcoVadis software

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity of extreme weather events
• Changes in precipitation patterns
• Rising sea levels

Transition Risks

• Increased pricing of GHG emissions
• Enhanced emissions-reporting obligations
• Mandates on and regulation of existing products and services
• Exposure to litigation
• Increased cost of raw materials
• Increased cost of renewable energy implementation
• Shifts in consumer preferences
• Stigmatization of sector
• Increased stakeholder concern

Opportunities

• Resource efficiency
• Use of lower emission energy sources
• Use of supportive policy incentives
• Use of new technologies
• Shift toward decentralized energy generation
• Development/expansion of low-emission goods and services
• Shift in consumer preferences
• Access to new markets

Reporting Standards

Frameworks Used: Greenhouse Gas (GHG) Protocol, Task Force on Climate-Related Financial Disclosures (TCFD)

Certifications: ISO 9001, 14001, and 45001 (Plug Safety Services)

Sustainable Products & Innovation

• PEM fuel cells and electrolyzers
• Cryogenic trailers and mobile storage equipment
• Hydrogen compression and storage systems
• Hydrogen refueling stations
• Hydrogen-fueled trucks

Environmental Metrics

ESG Focus Areas

• Climate Change
• Green Hydrogen
• Diversity, Equity, and Inclusion
• Supply Chain Sustainability
• Employee Well-being
• Governance

Environmental Achievements

• Completed initial Scope 3 GHG emissions inventory.
• Began commissioning of liquid hydrogen plant in Georgia.
• Produced over one hundred 1 megawatt (MW) PEM stacks in one month at Rochester gigafactory.
• Pioneered offshore hydrogen production with partners.

Social Achievements

• Implemented several programs to enhance employee experience, including Employee Resource Groups (ERGs).
• Launched a Global Employee Assistance Program.
• Increased number of U.S. Armed Services veterans employed.
• Maintained a TRIR of 2.8 and zero fatalities.

Governance Achievements

• Added two new directors to the Board in 2023.
• Four of nine directors self-identify as female, an under-represented minority, or LGBTQ+.
• Updated Code of Conduct in 2023.
• Implemented a cybersecurity risk management program.

Climate Goals & Targets

Environmental Challenges

• Increased pricing of GHG emissions due to potential carbon tax.
• Potential carbon tax based on imports of precious metals.
• Increased emission reporting obligations.
• Changing regulations on hydrogen fuel production and transportation.
• Increased exposure to litigation related to sustainability claims.
• Unsuccessful investment in new technologies.
• Costs to transition to lower emissions technology.
• Uncertainty in market signals.
• Increased cost of raw materials.
• Increased cost of renewable energy implementation.
• Shifts in consumer preferences.
• Stigmatization of sector.
• Increased stakeholder concern or negative feedback.
• Increased severity of extreme weather events.
• Changes in precipitation patterns & extreme variability in weather patterns.
• Rising sea levels.

Mitigation Strategies

• Investing in renewable energy PPAs.
• Implementing new recycling technology to reduce reliance on imported precious metals.
• Regionalizing supply channels.
• Evaluating technology enhancements for emissions calculations.
• Actively advocating for policies supporting the clean hydrogen industry.
• Proactive climate risk disclosures and seeking outside legal counsel.
• Establishing a 5-year development roadmap with regular reviews.
• Focusing investments on scaling hydrogen production and R&D.
• Continuously monitoring legislative bills and working with governmental agencies.
• Purchasing raw materials in advance and storing them at local sites.
• Regional diversity in supply chain.
• Developing green hydrogen production infrastructure, supply chain diversification, and renewable energy farms.
• Staying transparent in the marketplace and educating consumers.
• Business plan to produce green hydrogen at a scalable level.
• Establishing highly effective response scenarios for extreme weather events.
• Investing in high-pressure tankers for power outage protection.
• Extensive weather tracking system.
• Investing in more water treatment plants and researching water-efficient hydrogen production technology.
• Focusing on regional acquisition and partnerships in supply chain management.
• No mitigation steps deemed necessary for sea level rise at this time.

Supply Chain Management

Supplier Audits: Using EcoVadis software.

Responsible Procurement

• Supplier Code of Conduct
• Conflict Minerals Policy
• Fair Treatment Policy
• International Human Rights Policy
• Anti-Bribery and Anti-Corruption policies

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity of extreme weather events
• Changes in precipitation patterns
• Rising sea levels

Transition Risks

• Increased pricing of GHG emissions
• Potential carbon tax based on imports
• Increased emission reporting obligations
• Changing regulations
• Increased exposure to litigation
• Unsuccessful investment in new technologies
• Costs to transition to lower emissions technology
• Uncertainty in market signals
• Increased cost of raw materials
• Increased cost of renewable energy implementation
• Shifts in consumer preferences
• Stigmatization of sector
• Increased stakeholder concern

Opportunities

• Use of lower emission energy sources
• Use of supportive policy incentives
• Use of new technologies
• Shift toward decentralized energy generation
• Development/expansion of low emission goods and services
• Development of new products or services
• Shift in consumer preferences
• Access to new markets
• Use of public sector incentives
• Participation of renewable energy programs
• Resource substitutes/diversification

Reporting Standards

Frameworks Used: Sustainability Accounting Standards Board (SASB), Greenhouse Gas (GHG) Protocol, Task Force on Climate-Related Financial Disclosures (TCFD)

Certifications: ISO 9001:2015

Third-party Assurance: Not specified

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 9 (Industry, Innovation and Infrastructure)

Green hydrogen strategy, fuel cell technology, GenFuel solutions.

Sustainable Products & Innovation

• PEM fuel cells and electrolyzers
• Cryogenic solutions for hydrogen liquefaction and transportation