Climate Change Data

Environmental Metrics

ESG Focus Areas

• Human Rights
• Labor
• Environment
• Anti-Corruption
• Worker Safety
• Data Security
• Employment Practices
• Economic Performance
• Non-discrimination
• Anti-corruption
• Employee Training & Education
• Operational Material Efficiency & Recycling
• Diversity & Inclusion
• Environmental Compliance

Environmental Achievements

• One Hillenbrand site piloted a ten-hour, four-day work week, which is estimated to result in a 20% year-over-year energy reduction.
• Batesville business is utilizing scrap wood and sawdust either in our boilers to heat our own kilns for drying our lumber or is sending sawdust offsite to help heat other processes needed in other manufacturing settings.
• Batesville also re-melts and reuses some of its zinc trimmings from diecasting and recycles other materials such as steel and copper.
• Milacron site in Batavia, Ohio, which had fully integrated recycling protocols into all of their assembly lines.

Social Achievements

• Launched the One Campaign, which includes 1 day of service, 1 week of volunteering, 1 month of educational awareness and 1 year to move the needle in sustainability.
• Partnered with RefugeeConnect to provide quality education to refugee children.
• Partnered with Kids Discovery Factory to host a STEAM camp for students.
• Provided inclusion-focused programming, including implicit bias training and panel discussions.
• Developed an office waste recycling program at the corporate center.
• Participated in Manufacturing Camp to engage middle schoolers in manufacturing careers.
• Partnered with Batesville Community School Corporation to launch the Junior Ambassadors Program.
• Expanded internship recruitment to diverse institutions.

Governance Achievements

• Joined the United Nations Global Compact.
• Expanded the team responsible for ethics and compliance-related matters.
• Strengthened anti-corruption program based on best practices.
• Implemented a system for employees to report suspicious emails.
• Provided training on GDPR and HIPAA.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic
• Racial tensions and inequality
• Data security in a global organization
• Corruption risks in a global company

Mitigation Strategies

• Comprehensive plans to keep employees safe during COVID-19.
• Reaffirmed commitment to creating an inclusive environment.
• Implemented defense-in-depth data security strategy based on ISO 27001/02 framework.
• Expanded ethics and compliance team, strengthened anti-corruption program, and provided employee training.

Supply Chain Management

Responsible Procurement

• Working with suppliers to reduce plastic and foam packaging and increase bulk shipments.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Global Reporting Initiative (GRI), UNGC Principles

Certifications: ISO 45001 (Coperion Stuttgart Field Service), ISO 14001 (Certain Milacron Injection Molding & Extrusion locations)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)
• Goal 4 (Quality Education)
• Goal 8 (Decent Work and Economic Growth)
• Goal 10 (Reduced Inequalities)
• Goal 17 (Partnerships for the Goals)

One Campaign initiatives align with UN Sustainable Development Goals.

Sustainable Products & Innovation

• Coperion provided technology to produce sustainable, bio-based plastic films.

Awards & Recognition

• OSHA’s Safety & Health Achievement Recognition Program (SHARP) for Coperion’s Wytheville site

Environmental Metrics

ESG Focus Areas

• Governance
• Environmental
• Social

Environmental Achievements

• Created a focused Environmental Council and continuing our work with our Health and Safety Council
• Engaged a consultant to accelerate our energy and emissions data collection progress
• Further developed company products to support customers’ environmental goals (e.g., closed-loop recycling system for multilayer film, M-powered IIOT solution for operational efficiency)

Social Achievements

• Hired first Director of Diversity, Equity, and Inclusion
• Launched a cross-functional “Inclusion at Hillenbrand” Council
• Supported the LGBTQ+ Equality Act (U.S.—Federal)
• Hosted “Women in Engineering Day” and invited students to participate in “Introduce a Girl to Engineering” Day
• Launched unconscious bias training
• Sponsored the “Girls with Goggles” program
• Supported the fight against COVID-19 through volunteering and donations
• Decreased Rolling Recordable Incident Rate from 2.35 to 1.80

Governance Achievements

• Hired first Chief Sustainability Officer
• Incorporated legacy-Milacron into Hillenbrand’s global compliance program
• Published Supplier Standards
• Increased training around phishing and data security
• Tied executive compensation to specific plans to increase diversity

Climate Goals & Targets

Environmental Challenges

• Early stages of sustainability journey with opportunities to drive employee engagement and improve data collection
• Need to develop KPIs, long-term goals, and improve environmental alignment and transparency
• COVID-19 pandemic impacting operations and community engagement

Mitigation Strategies

• Aligning sustainability strategy with Hillenbrand Operating Model
• Increasing engagement with operating companies and developing a unified reporting mechanism
• Engaging a consultant to accelerate data collection on energy use and emissions
• Adapting community engagement efforts to support employees and communities during the pandemic

Supply Chain Management

Responsible Procurement

• Supplier Standards implemented in 2020, including requirements related to human rights, environmental protection, ethics, and anti-corruption.

Climate-Related Risks & Opportunities

Opportunities

• Improving efficiency across production and distribution processes, better understanding energy use, and potentially reducing emissions.

Reporting Standards

Frameworks Used: GRI (partial)

Sustainable Products & Innovation

• Closed-loop recycling system for multilayer film
• M-powered IIOT solution
• Co-injection technology for reducing virgin plastic resin usage

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, & Inclusion
• Governance
• Energy and Emissions
• Worker Safety
• Supply Chain

Environmental Achievements

• Reduced GHG emissions per million working hours from 5,685 MT CO2e in 2020 to 4,989 MT CO2e in 2021
• Installed a chip compactor at Coperion’s Wytheville facility to increase metal chip recycling efficiency
• Replaced grinding process with milling process at DME to recycle metal chips
• Implemented enhanced casket packaging process at Batesville, eliminating 200,000 pounds of plastic wrap and ~60,000 pounds of blankets annually

Social Achievements

• Launched five associate-driven Business Resource Groups (BRGs)
• Expanded paid parental leave policy
• Improved Rolling Recordable Incident Rate (RIR) from 1.84 in 2020 to 1.72 in 2021
• Increased associate safety training at several locations
• Implemented unconscious bias training for management and HR staff

Governance Achievements

• Increased percentage of women on the Board of Directors from 27% to 45%
• Established a Sustainability Steering Committee and an ESG Council
• Embedded ESG topics into the enterprise risk management (ERM) process

Climate Goals & Targets

Environmental Challenges

• Complex supply chain issues
• Attracting and retaining talent
• Understanding and reducing the company's impact on climate change
• Data collection challenges for historical energy and emissions data

Mitigation Strategies

• Developed an energy-reduction toolkit
• Engaged a consultant to accelerate data collection
• Established reporting programs to track energy footprint
• Provided training on greenhouse gas accounting
• Developed a Global Health & Safety Policy
• Implemented a robust recruitment strategy
• Improved associate engagement through surveys and focus groups

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Standards
• Human Rights Policy
• Global Environmental Policy
• Supplier Diversity Policy
• Supply Chain Transparency Policy
• Anti-Corruption Policy
• Conflict Minerals Policy
• Code of Ethical Business Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, SASB, UNGC

Certifications: ISO 9001:2015, ISO 14001, ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Coperion's ZSK twin screw extruder for battery and PET recycling
• Mold-Masters' co-injection system for using up to 50% PCR

Awards & Recognition

• CFO of the Year award (Batesville)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion
• Supply Chain Management
• Business Ethics
• Product Innovation
• Employee Health and Safety
• Community Engagement

Environmental Achievements

• Reduced Scope 1 and 2 GHG emissions (2020: 70,334 MT CO2e; 2022: 41,524 MT CO2e)
• Implemented automated reporting software to improve energy and emissions data quality.
• Disclosed Scope 3 emissions for the first time.
• Installed solar panels in Kunshan City, China.
• Stuttgart and Weingarten, Germany locations powered by 100% renewable energy.

Social Achievements

• Launched Make It Matter associate recognition program.
• Launched five Business Resource Groups (BRGs).
• Scaled unconscious bias training program to 88% of leaders.
• Increased DEI disclosures through the Bloomberg Gender Equality Index.
• Expanded supplier diversity initiatives, with 13% of North American purchases from diverse suppliers.

Governance Achievements

• Enhanced screening process for charities and non-profit organizations.
• Embedded ESG topics into enterprise risk management process.
• Improved executive compensation transparency through “say on pay” vote.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to labor shortages, inflation, shipping delays, the COVID-19 pandemic, the Russia-Ukraine war, and U.S. tariffs.
• Global challenges related to climate change, including extreme weather events, long-term changes in temperature levels, water availability, and supply costs.

Mitigation Strategies

• Hosted supplier conferences to develop solutions to overcome global challenges.
• Developed alternative sourcing strategies.
• Implemented an Energy Reduction Toolkit.
• Conducted energy audits to identify opportunities for efficiency and energy reduction.
• Developed mitigation plans for potential threats or risks related to political, logistical, and climate developments.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Standards
• Supplier Code of Conduct
• Human Rights Policy
• Global Environmental Policy
• Supply Chain Transparency Policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Renewable energy investments

Reporting Standards

Frameworks Used: GRI Universal Standards 2021, SASB, UNGC, TCFD

Certifications: ISO 9001:2015, ISO 14001, ISO 45001

Third-party Assurance: Limited internal assurance

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation, and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

Initiatives contribute to these goals through energy efficiency improvements, product innovation, waste reduction, and emissions reductions.

Sustainable Products & Innovation

• Milacron M-Powered iMFLUX module
• Coperion ZSK twin screw extruder recycling technology
• Mold-Masters co-injection technology
• Rotex ULTREX separator

Awards & Recognition

• 50/50 Women on Boards™ recognition
• MSCI ESG Ratings assessment (A rating)
• Cincinnati Magazine’s Cincinnati 300 list
• Indianapolis Business Journal’s Indiana 250

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion
• Governance
• Supply Chain Management
• Product Innovation
• Employee Health & Safety

Environmental Achievements

• Improved MSCI ESG Rating to AA from A.
• Reduced emissions normalized to working hours by 1.4% from 2022 to 2023.
• Renewable energy comprised 13% of total electricity mix.
• German manufacturing facilities powered by 100% renewable electricity.
• Coperion won the Stuttgart Innovation Award 2023 for its ZS-B MEGAfeed side feeder.

Social Achievements

• Launched associate-driven learning platform through LinkedIn Learning.
• Launched BRG Mentorship Program.
• Improved mental health support programs in the U.K.
• Expanded paid parental leave in the U.S.
• Increased transparency in DEI metrics.

Governance Achievements

• Completed first “double materiality” assessment.
• Updated Code of Ethical Business Conduct.
• Implemented a comprehensive system for supplier human rights due diligence and risk management.
• Signed the Call to Action from business to government on the 20th Anniversary of the UN Convention Against Corruption (UNCAC).

Climate Goals & Targets

Environmental Challenges

• Production volatility impacting overall emissions.
• Supply chain disruptions due to geopolitical conflicts and other factors.
• Addressing climate-related risks and opportunities across the value chain.

Mitigation Strategies

• Established a standardized decarbonization approach.
• Conducted energy audits at key locations.
• Developed a due diligence model to assess potential acquisitions.
• Implemented a new supply chain service portal for risk management.
• Expanded supplier management standards and technologies.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Standards, Supply Chain Transparency Policy, conflict minerals management.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, supply chain disruptions

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Product innovation, market expansion, new technologies, supply chain optimization.

Reporting Standards

Frameworks Used: GRI Universal Standards 2021, GRI Topic Standards, SASB, UNGC, TCFD (aligning)

Certifications: ISO 9001 (24 sites), ISO 14001 (7 sites), ISO 45001 (7 sites)

Third-party Assurance: Limited internal assurance

UN Sustainable Development Goals

• SDG 7, SDG 8, SDG 12, SDG 13, SDG 16

See report for details on how initiatives contribute to these goals.

Sustainable Products & Innovation

• ZS-B MEGAfeed side feeder, ZSK FilCo, DIOStart sourdough starters, Hygienic Design Wendel Mixer, Compact Granulation System, iControl™ Hot Runner Insulation, Equatemp® Dual Zone Hot Sprue Bushing, eQ-Series injection molding machines.

Awards & Recognition

• Stuttgart Innovation Award 2023, Reuters Responsible Business Awards finalist.