Climate Change Data

Environmental Metrics

ESG Focus Areas

• Conflict Minerals

Governance Achievements

• Adopted a Conflict Minerals Policy as part of the Company’s Code of Business Conduct and Ethics.

Climate Goals & Targets

Environmental Challenges

• Unable to determine the origin of all 3TG (tin, tantalum, tungsten, and gold) used in products.
• Difficulty identifying suppliers downstream from direct suppliers due to the size, breadth, and complexity of products and the constantly evolving supply chain.
• Lack of direct relationship with 3TG smelters and refiners; inability to perform direct audits.
• Not all direct suppliers provided responses to the conflict minerals survey; many respondents could not confirm the country of origin of the mine or 3TG.

Mitigation Strategies

• Conducted a reasonable country of origin inquiry using the EICC GeSI Reporting Template.
• Developed due diligence processes in conjunction with the OECD Due Diligence Guidance.
• Established record-keeping procedures to ensure retention of relevant documentation.
• Encourages suppliers to reasonably source conflict minerals from conflict-free mines and smelters.
• Ongoing due diligence process to review supplier selection criteria, engage with suppliers to identify 3TG usage, origin, and chain of custody, and communicate information requirements.

Supply Chain Management

Responsible Procurement

• Policy Regarding Conflict Minerals (in Code of Business Conduct and Ethics)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: OECD Due Diligence Guidance, Dodd-Frank Act Section 1502

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Transitioned from oil-based primers to water-based primers on car carrier product line, reducing VOC emissions by 53.7 tons from 2019-2022.
• Implemented a solvent reclamation process, reclaiming 11,439 gallons of solvent in 2022.
• Reduced hazardous waste off-site shipment totals by 76.6% from 2019 to 2022.
• Achieved ISO 14001 certification for Environmental Management System (EMS) in May 2023.
• Upgraded 99% of facilities with LED lighting fixtures.

Social Achievements

• Implemented a 4-on-4-off work schedule.
• Optimized Ooltewah, TN and Pennsylvania facilities to enhance space utilization and reduce forklift traffic, improving air quality, workforce health and safety, and cost efficiency.
• Installed air filtration equipment to remove airborne contaminants.
• Provided 40,328 hours of total training for employees in 2022 (average 32 hours per employee).
• Launched Link Up, a townhall event for leadership updates and employee feedback.
• Increased Team Leader to employee ratio on the production floor.
• Provided a six-week Team Leader Bootcamp Training program.
• Started the Front-Line Leadership Academy.

Governance Achievements

• Integrated ESG goals into the Incentive Plan for executive officers.
• Appointed four new non-employee directors to the Board.
• Committed to plans for additional Board refreshment measures, including plans for at least two longer-standing, independent directors to step down over the next 3 years.
• Plans to name a Lead Independent Director.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Working with North American and European chassis manufacturers to assess alignment with regulatory and legal requirements.
• Compliance with Section 1502 of the Dodd-Frank Act (conflict minerals).

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO 14001, ISO 9001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• CRMA Manufacturing Excellence Award (2018)
• TAM Environment Award (2017)
• Congressional Certificate of Recognition
• Shenango Valley Chamber of Commerce Growth Large Manufacturing Award (2017)

Environmental Metrics

Social Achievements

• Launched "Link Up," a townhall event for leadership updates.
• Increased Team Leader to employee ratio on the production floor to improve training, quality, and safety.
• Provided a six-week Team Leader Bootcamp Training program.
• Started the Front-Line Academy for in-house professional development.
• Took various actions to attract and retain skilled laborers, including attending hiring events, broadening recruitment platforms, and paying sign-on and retention bonuses, resulting in decreased employee turnover rates in fiscal 2023.

Climate Goals & Targets

Environmental Challenges

• Supply chain constraints
• Freight challenges
• Intense inflation
• Rapidly increasing interest rates
• Labor shortages
• Global supply chain issues causing production delays and cost pressures.
• Ongoing conflict in Ukraine and the Middle East impacting supply chain and fuel costs.

Mitigation Strategies

• Maintaining focus on meeting customer needs through ongoing communication and prioritization with suppliers.
• Proactive inventory management of materials and components.
• Implementing price increases and surcharges (2022) and an eight-percent price increase (Q1 2023).
• Developing alternative components using different raw materials.
• Seeking additional production capabilities through capital deployment, including the acquisition of SHC and purchase of an additional facility.

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks

• Regulatory changes (e.g., CARB's Advanced Clean Trucks regulation)