Climate Change Data

Cognex Corporation

Climate Impact & Sustainability Data (2022)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:3,060 tCO2e/year
Scope 1 Emissions:297 tCO2e/year
Scope 2 Emissions:2,763 tCO2e/year
Renewable Energy Share:18% of total energy use
Total Energy Consumption:5,557 MWh/year
Water Consumption:989 CCFs (three US offices only)
Waste Generated:224 tons/year
Carbon Intensity:3.04 MT CO2e / $M revenue in 2022

ESG Focus Areas

  • Climate Change
  • Data Security and Privacy
  • Supply Chain Sustainability
  • Diversity, Equity, Inclusion, and Belonging (DEIB)
  • Corporate Governance

Environmental Achievements

  • Reduced emissions intensity by 17% (compared to 2020) while growing employee base by 10%
  • Reduced energy consumption in owned offices by 3% compared to 2020
  • Eliminated 105 cubic meters of polyethylene foam packaging

Social Achievements

  • Launched Cognex Cares program focusing on Corporate Giving, Community Engagement, and DEIB
  • Voluntary employee turnover rate of 9% (below the 18% industry average)
  • Expanded Employee Assistance Program to include all Cognoids in Europe

Governance Achievements

  • Added four new independent board members with ESG experience since 2021
  • Amended the charter of the Nominating, Governance, and Sustainability Committee to oversee ESG strategy
  • No material customer data breaches, leaks, thefts, or losses of internal data in 2022

Climate Goals & Targets

Environmental Challenges

  • Supply chain disruptions due to COVID-19 pandemic, natural disasters, and component shortages
  • Climate-related risks associated with primary contract manufacturer location in Indonesia
  • Difficulty isolating renewable energy mix for leased facilities
Mitigation Strategies
  • Increased inventory by over 100% ($60 million increase from 2020 to 2022)
  • Added a second contract manufacturer in Malaysia and are working to add more in diverse locations
  • Daily coordination meetings to manage supply chain disruptions
  • Exploring more efficient replacements for facilities and equipment as they reach end of life

Supply Chain Management

Supplier Audits: 20-30/year

Responsible Procurement
  • Supplier Code of Conduct
  • Audits of new and strategic suppliers
  • Compliance with ISO 9001:2015, RBA Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme temperatures, rising sea levels, tropical storms impacting contract manufacturer in Indonesia
Opportunities
  • Geographic diversification allowing for adaptation to changing environments

Reporting Standards

Frameworks Used: SASB (Software and IT Services standard), TCFD

Third-party Assurance: ISOS Group (for GHG calculations)