Climate Change Data

Environmental Metrics

ESG Focus Areas

• Product innovation
• Product quality & safety
• Product stewardship & consumer health
• Culture & ethical behaviour
• Health, safety & well-being
• Diversity, inclusion & equal opportunity
• Operational environmental impacts
• Supply chain social & environmental impacts
• Energy & greenhouse gas emissions
• Community engagement & investment
• Governance & compliance

Environmental Achievements

• Americas region prevented more than 3 million pounds of waste from going to landfill.
• Cullman, Alabama facility recycled 2.9 million pounds of cardboard, wood, foil, film and paper.
• Cornwall, UK facility uses solar panel generated energy for 34% of its operations.
• West London, UK site achieved 56% energy savings through chiller technology.
• All water used in the manufacture of Thermostatic Valves in Brisbane, Australia, is fully recycled.
• 70% of brass offcuts are recycled.

Social Achievements

• Launched an employee assistance program in Australia.
• Americas’ engagement level was 78% based on employee survey.
• 88% reduction in injury rate over the last three years in Americas.
• Over 26 RWC people participated in Habitat for Humanity project.
• 2,500 lunches packed for children in need in Georgia.

Governance Achievements

• Established an ESG steering committee.
• Launched a global internal digital platform for employees.
• Launched a whistle-blowing hotline managed by an independent third party.

Climate Goals & Targets

Environmental Challenges

• Potential disruptions to supply chains due to climate change.
• Changes to product specifications and demand from changing weather patterns.
• Water scarcity in some regions.
• Need to improve data collection and reporting on energy use and greenhouse gas emissions.
• Need to formalize supplier screening for social and environmental risks.

Mitigation Strategies

• Developing a more coordinated approach to community investment.
• Implementing Gensuite as a global health and safety management system.
• Intending to track and publish data on energy use and greenhouse gas emissions in future reports.
• Building long-term relationships with suppliers and favoring those with better governance.
• Developing a program to create meaningful impact around diversity among employees.

Supply Chain Management

Responsible Procurement

• RWC Supplier Handbook (outlining environmental requirements, greenhouse gas emissions, quality standards, risk management, and material source approval); Ethical code of practice for suppliers located outside of Australia.

Climate-Related Risks & Opportunities

Physical Risks

• Potential disruptions to supply chains
• Changes to product specifications and demand from changing weather patterns
• Customer availability of water and energy

Transition Risks

• Cost and access to energy for manufacturing and product use

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards 2016

Certifications: ISO 9001:2015 (Australia and New Zealand)

UN Sustainable Development Goals

• Goal 6: Clean Water and Sanitation
• Goal 9: Industry, Innovation and Infrastructure
• Goal 11: Sustainable Cities and Communities
• Goal 13: Climate Action

RWC's products contribute to water efficiency, sustainable infrastructure, and energy efficiency; the company's operations aim to minimize environmental impact.

Sustainable Products & Innovation

• StreamLabs (smart leak detection and control)
• Thermostatic Mixing Valves (TMVs)
• Pressure Reducing Valves (PRVs)
• Backflow Prevention Devices
• SharkBite push-to-connect fittings

Awards & Recognition

• 2018 Best Booth Winner – Large Booth Category at ASPE Convention & Expo
• Lowe’s 2018 Vendor partner of the year
• Ace Hardware Show 2018 Vendor of the Year
• JG Speedfit named Best Plumbing Brand at BMJ industry awards

Environmental Metrics

ESG Focus Areas

• Community
• Environmental
• Sustainability

Environmental Achievements

• 120+ tons of wood, plastic and paper recycled in the USA per month.
• All water used in the manufacture of Thermostatic Valves in Brisbane, Australia, is fully recycled.
• PEX curing ovens in Cullman, Alabama, USA, use advanced water recycling technology to optimise and reduce water wastage.
• RWC’s manufacturing site in Cornwall, UK, uses solar panel generated energy for 34% of its operations.
• State-of-the-art chiller technology in West London, UK, delivers annual energy savings of 56%.
• Over 500,000 leaks identified by Streamlabs with potential water saving exceeding 35m gallons.
• Multicavity hot runner tooling is used in West London, UK, to reduce plastic wastage during manufacturing.
• Globally RWC and its family of brands recycle 6 million kilograms of brass.

Social Achievements

• Global RWC employee campaign raised nearly $108,000 for the Australian Red Cross for bushfire relief.
• RWC donated US$25,000 to Equal Justice and Policing Equity organisations.
• Steps taken to reignite commitment to diversity and inclusion (D&I) by increasing diversity among leadership ranks and creating a D&I steering committee.

Governance Achievements

• Appointed two new independent directors to the board.
• Regular review of the composition of the Board to strengthen capacity by adding members with relevant skills and experience.
• Released first social impact report summarizing community, environmental, and sustainability practices.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic significantly impacted operations and financial performance, causing variations in demand across channels and product lines, supply chain disruptions, and logistical challenges.
• Significant drop in demand in EMEA due to government restrictions.
• Supplier delays for certain manufactured products and components from China, Italy, and other countries.
• Reduction in UK plant operations adversely impacted delivery timeframes for some products.
• Increased mental health consequences for employees due to the pandemic.

Mitigation Strategies

• Prioritized maintaining high levels of customer service.
• Curtailed all non-essential capital expenditure and discretionary operating expenditure.
• Furloughed around 40% of employees in the UK and Europe.
• Temporarily reduced Australian sites to a 4-day working week.
• Senior executive team and non-executive directors took a temporary 20% reduction in salary and fees.
• Developed crucial components for hospitals and medical equipment manufacturers in the UK.
• Implemented on-site social distancing, daily temperature checks, provision of hand sanitizer and PPE, and cleaning protocols.
• Placed employees on paid leave to self-isolate and conducted contact tracing.
• Expanded employee communications to include resources for managing stress and anxiety.
• Conducted a company-wide survey to understand employee well-being and took specific actions in locations with higher levels of stress.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• GHG emissions
• Gender diversity
• Health & Safety

Environmental Achievements

• Set absolute targets for scope 1 and scope 2 emissions reduction based on a 1.5°C pathway: 42% reduction by 2030 compared to FY2021 baseline; Net zero by 2050
• Measured scope 1 and scope 2 FY2022 results and improved FY2021 baseline data
• Developed an actionable plan for decreasing scope 1 and 2 emissions including purchasing renewable energy and enhancing operational efficiency
• Set an aspiration to achieve net zero for scope 3 by 2050
• Established scope 3 FY2021 baseline
• Measured scope 3 FY2022 results
• Improved waste tracking and took action to increase recycling and reduce packaging mass

Social Achievements

• Improved safety culture with a zero-harm goal, decreasing injury rate by 15% in FY2022 and setting a further 10% reduction target for FY2023
• Set ambitious gender diversity goals (40% women/40% men/20% any gender) across the organisation, making a 2% improvement in FY2022 to reach 39% women globally
• Continued to add Employee Resource Groups (ERGs) to enhance inclusion
• Invested in workforce learning and development with over five hours of training per employee globally in FY2022
• Supported communities with over 1,000 hours of volunteering and donations

Governance Achievements

• Established two new committees of the Board of Directors – ESG and Health & Safety – to enhance oversight
• Created an executive-level ESG steering committee
• Tied ESG key performance indicators to the executive team’s compensation
• Adopted new policies on ESG and Human Rights
• Maintained and expanded ethical business practices within the supply chain

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Data collection for scope 3 emissions and water usage
• Lack of recycling facilities in some regions

Mitigation Strategies

• Improved data collection and coordination
• Collaboration with suppliers to reduce scope 3 emissions
• Increased global coordination to share best practices and collect data for company-wide targets

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Handbooks
• Third-party contractual arrangements requiring compliance with RWC's integrity standards

Climate-Related Risks & Opportunities

Physical Risks

• Major weather events impacting facilities

Transition Risks

• Current and emerging regulation
• Market changes driven by regional product regulations and expectations

Opportunities

• Increased demand for repair products due to extreme weather

Reporting Standards

Frameworks Used: SASB, TCFD

Certifications: ISO 9001

Third-party Assurance: Not disclosed

Sustainable Products & Innovation

• Products contributing to LEED or BREEAM certification

Awards & Recognition

• Excellenteers’ award at the British Quality Foundation (BQF) awards ceremony

Environmental Metrics

ESG Focus Areas

• Employee Health & Safety
• Energy & Greenhouse Gas (GHG) Emissions
• Product Sustainability
• Diversity, Equity & Inclusion
• Employee Engagement
• Supply Chain
• Governance
• Manufacturing Waste
• Operational Water

Environmental Achievements

• Reduced Scope 1 and 2 GHG emissions by 28%, exceeding the FY23 target of 9% reduction compared to FY21 baseline.
• Launched SharkBite Max, featuring an assembly machine that uses 50% less energy while producing twice the output compared to the first-generation SharkBite manufacturing.
• Consolidated manufacturing and distribution footprint in the US, Australia, and New Zealand - increasing operational efficiency and reducing environmental impact through reduced transportation and utility usage.
• Improved integration across the Americas, APAC, and EMEA regions for collecting data and measuring progress against global goals.

Social Achievements

• Reduced injury frequency rate by 5.6% - a cumulative reduction of 22% since FY20 and no serious injuries recorded during FY23.
• Launched the “Everyone Safe, Every Day,” safety program which involves managing critical risks and developing safety leaders.
• Improved overall gender diversity from 38.6% women in FY22 to 39.1% in FY23 on the path to the goal of 40% women/40% men/20% any gender.
• Committed to conducting regular pay equity studies.
• Achieved employee engagement score of 74%.
• Committed to an employee engagement annual survey cycle every 12 months versus every 18 months.
• Strengthened the future talent pipeline by adding intern, undergraduate, and co-op early career programs.
• Added three Employee Resource Groups (ERGs).

Governance Achievements

• Conducted a significant contracting project with over 90% of top-tier vendors by spend in FY23, including key provisions governing supplier risks, compliance, and legal obligations.
• Improved assessment of strategic suppliers’ ability to meet key performance and compliance criteria through an annual online supply chain questionnaire.
• Utilized an enhanced multi-factor questionnaire, including anti-bribery and corruption disclosure questions, to identify high-risk suppliers.
• Expanded online and in-person training in key risk areas such as anti-bribery and corruption, anti-trust and competition, trade sanctions, whistleblower policies, and cybersecurity.
• Created bespoke training to ensure compliance education captures the applicability of local laws and targets those positions, functions, and regions with a higher risk of noncompliance.
• Invested significantly in governance, policies, and practices to build more secure platforms for business systems.

Climate Goals & Targets

Environmental Challenges

• Total emissions increased, driven by Scope 3 emissions. Purchased Goods & Services, which makes up 81% of Scope 3, is calculated with the spend-based method and thus increases with business growth.
• Improving data collection, methodology, and analysis is ongoing.

Mitigation Strategies

• Improving data collection, methodology, and analysis is ongoing.
• Consolidating manufacturing and distribution footprint to improve efficiency and reduce environmental impact.
• Executing energy audits at multiple high-usage sites and evaluating on-site solar where appropriate.
• Developing a Freeze Playbook to maximize ability to respond to disaster events.

Supply Chain Management

Supplier Audits: 90% of top-tier vendors by spend in FY23

Responsible Procurement

• Ethical sourcing, efficient production, and on-time delivery; respect for human rights; fair labour practices; safe and healthy working conditions; anti-corruption measures; compliance with international laws, regulations, and global standards.

Climate-Related Risks & Opportunities

Physical Risks

• Acute weather events (tornadoes, hail, winter weather) impacting facilities and operations.

Transition Risks

• Current and emerging regulation; market conditions; technology; reputation.

Opportunities

• Increased demand for repair products following acute weather events; path to net zero; operational efficiencies; product sustainability; waste and water management.

Reporting Standards

Frameworks Used: SASB, TCFD

Certifications: ISO 9001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• SharkBite Max

Awards & Recognition

• RWC EMEA achieved the finals of the BQF UK Excellence Awards for Transformation Excellence.

Environmental Metrics

ESG Focus Areas

• Energy & GHG emissions
• Product sustainability
• Sustainable packaging
• Employee Health & Safety
• Diversity, Equity & Inclusion
• Employee engagement
• Responsible supply chain
• Business ethics & compliance
• Data security & privacy

Environmental Achievements

• Reduced Scope 1 and 2 GHG emissions by 35%, exceeding the FY24 target of 14% reduction compared to FY21 baseline.
• Obtained third-party limited assurance of FY21 baseline Scope 1 and 2 GHG emissions.
• Improved Scope 3 calculations by adding supplier-specific emission factors and more closely aligning with financial results.
• Executed 6 energy audits at manufacturing plants in the Americas, APAC, and EMEA regions.
• Installed on-site solar at our West Drayton, UK, manufacturing plant.
• Converted plastic packaging to recyclable cardboard materials for Eastman Steam Dryer Installation Kits.
• Redesigned 343 corrugated gas connector SKUs, reducing the weight by an average of 13% per connector.

Social Achievements

• Implemented "Everyone Safe, Every Day" – a comprehensive program of multi-layer governance, globally consistent risk management, standardised systems and reporting, and behavioural safety training.
• Reduced Recordable Injury Frequency Rate by 52% - a cumulative reduction of 58% since FY20.
• Improved female gender diversity by 5% to 38% in our executive employee tier, by 9% to 27% in our management tier, and held steady at 38% in the professional and hourly tiers. Overall female gender diversity improved incrementally in FY24 to 39.2%.
• Achieved an employee engagement score of 72% in our September 2023 pulse survey, with a 7% improvement in "My job is fulfilling and challenging" and a 4% increase in "My supervisor and I have had conversations about my development & growth."
• Partnered with Clu, the UK’s leading inclusive recruitment and talent insights platform, to enhance recruitment practices and address talent sustainability challenges.
• Launched an intern program in the USA to create early career talent pipeline programs.
• Nearly quadrupled the number of students in the early career SEED program – from 7 to 26 – in partnership with Cullman, Alabama, school board.
• Launched the ‘Managing Your Career’ workshop program to support our salaried employees with their growth and development.
• Added two new ERGs.

Governance Achievements

• Required active professional-level employees to complete Code of Conduct training via live, online, or virtual instruction.
• Implemented a process requiring suppliers to acknowledge our Modern Slavery policy and confirm compliance, including supplier identification and mitigation of modern slavery risks, active training of supplier employees on modern slavery requirements, and supplier accountability for non-compliance.
• Conducted 27 on-site visits to our tier one suppliers to review their quality control processes.
• Onboarded an enterprise-wide online ethics and compliance training portal to provide more effective and flexible access to training content by employees and improved monitoring and tracking of training activity and completion rates.

Climate Goals & Targets

Environmental Challenges

• Reducing Scope 1 emissions, specifically natural gas for heating. Electrification will need to be addressed to achieve Net Zero Scope 1 and 2.
• Collecting Scope 3 emissions (a complex process of continuous improvement measuring indirect upstream and downstream emissions outside of RWC’s direct control).
• Talent sustainability and increasing skills shortages.

Mitigation Strategies

• On-site solar, green tariffs, and operational efficiencies.
• Improved estimations of upstream and downstream transportation and distribution impacts; aligning Scope 3 activity data with financial reporting in preparation for third-party assurance of Scope 3 GHG emissions.
• Partnership with Clu for inclusive recruitment practices; launching intern and SEED programs.

Supply Chain Management

Supplier Audits: 27 on-site visits/year

Responsible Procurement

• Supplier Expectation Handbook
• Modern Slavery policy
• Annual supply chain questionnaires

Climate-Related Risks & Opportunities

Physical Risks

• Acute weather events (e.g., tornadoes, hail, winter storms)

Transition Risks

• Current and emerging regulation
• Market conditions
• Technology
• Reputation

Opportunities

• Increased demand for repair products during extreme weather events; ESG strategy; responsible manufacturing; product sustainability; sustainable packaging; manufacturing waste & operational water management.

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol, SASB, TCFD

Certifications: ISO 14001-2015, ISO 9001:2015

Third-party Assurance: KPMG

Sustainable Products & Innovation

• Eastman corrugated gas connectors (reduced weight); SharkBite Max (increased efficiency); Holman ECO product range (post-consumer recycled materials).

Awards & Recognition

• Armed Forces ERG Bronze award