Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Sustainability
• Workplace Safety
• Diversity and Inclusion
• Employee Engagement
• Community Engagement

Environmental Achievements

• Reduced absolute GHG emissions (Scopes 1 and 2) by 22% compared to 2018 levels and 15% compared to 2019 levels.
• Reduced waste intensity by 18% compared to 2019, with an overall waste generation reduction of 27%.
• Thermal Ceramics site in Augusta, Georgia reduced absolute water use by 51% and water intensity by 42% compared to 2016.
• Stourport, UK facility reduced total water usage by 20% and water flow by 30% compared to 2019.
• Phased out approximately 500,000 single-use plastic bottles.

Social Achievements

• Provided each employee with an average of eight hours of training.
• Expanded virtual learning offerings and e-learning resources.
• Expanded succession planning scope.
• Adapted global leadership programs to run virtually.
• Launched a grass-roots wellbeing program called ‘Better You, Better Life’.
• Kick-started a mental health awareness program.

Governance Achievements

• Developed and agreed a five-year health and safety plan.
• Developed a framework and methodology to further improve the approach to managing health and safety risks.

Climate Goals & Targets

Environmental Challenges

• Reducing Scope 3 emissions (raw materials from the supply chain).
• Being a relatively energy-intensive business.
• Addressing water-related issues within the watershed of local communities in areas of high or extremely high-water stress.

Mitigation Strategies

• Introducing energy teams to many sites to accelerate improvement work.
• Developing strong relationships with suppliers to focus on Scope 3 emissions.
• Investing in and installing additional energy and water meters to monitor and control high usage areas.
• Implementing improved water monitoring systems.
• Engaging engineers to evaluate and control water usage in processes.
• Integrating water management plans into regular facility assessments.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: CDP, SECR, TCFD

UN Sustainable Development Goals

• Goal 7
• Goal 9
• Goal 11

Morgan's products help customers manage heat and insulation, enable green energy production, contribute to the electrification of public transport, and create safer medical devices and better fire protection.

Awards & Recognition

• Silver award at the Learning Technologies Awards

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Stewardship
• Safety
• Workforce Diversity & Inclusion
• Employee Engagement

Environmental Achievements

• Reduced absolute GHG emissions (Scope 1 & 2) by 17% compared to 2020 (33% compared to 2015 baseline).
• Reduced CO2e intensity by 20% compared to 2020 (38% compared to 2015 baseline).
• Kailong site commissioned a treated wastewater recycling plant, reducing water use by 15,000 m3 annually.
• Gujarat site implemented a rainwater harvesting system.
• Stourport site improved an automated cleaning system, saving 4,000 m3 of water annually.

Social Achievements

• Launched a new language training program.
• Introduced the first employee resource group focusing on gender diversity.
• Launched a new employee survey tool ('Your Voice').
• Ran a second mental health awareness month.
• US teams began Mental Health First Aid training.

Governance Achievements

• Established an internal supply chain committee.
• Developed a new Supplier Code of Conduct, Conflict Minerals policy, and updated Modern Slavery policy.
• Refined due diligence process and developed a supplier questionnaire covering ESG topics.

Climate Goals & Targets

Environmental Challenges

• Increased water consumption (16%) and intensity (5%) in 2021 due to business growth and product mix changes.
• Increased lost-time accident rate (0.22) in 2021, potentially impacted by the pandemic.
• Reduced recycling opportunities due to the COVID-19 pandemic and restrictions in China.

Mitigation Strategies

• Projects underway to reduce water consumption in 2022.
• Rollout of new behavioral safety training.
• Launched a positive recognition feature in the 'Don't Walk By' app.
• Investment planned in 2022 to upgrade facilities and install new equipment in water-stressed areas to reduce water usage and increase water recycling.

Supply Chain Management

Supplier Audits: Pilot program conducted on top-tier suppliers in 2021; full implementation planned for 2022.

Responsible Procurement

• Supplier Code of Conduct
• Conflict Minerals policy
• Updated Modern Slavery policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Exploiting low-carbon opportunities

Reporting Standards

Frameworks Used: GRI, TCFD, GHG Protocol

Certifications: ISO 14001:2015, ISO 45001

Third-party Assurance: ERM Certification and Verification Services Limited (ERM CVS)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Products that reduce customers' GHG emissions

Awards & Recognition

• AAA MSCI ESG Rating
• EcoVadis Bronze Medal

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Stewardship
• Safety
• Workforce Diversity & Inclusion
• Sustainable Sourcing

Environmental Achievements

• Reduced absolute scope 1 and 2 CO2e emissions by 8.2%
• 49% of electricity from green or carbon-free sources
• Improved energy intensity by around 2%
• Significant investment in electric ovens at Ranipet site, reducing energy per kg of product by 40-28%
• Installation of a 4MWp solar system at Ranipet, supporting 50% of site's annual consumption
• 90% reduction in sulphur dioxide emissions at Augusta facility
• 500 m3 water harvesting system built at Aurangabad site, reducing water consumption by 6,750 m3

Social Achievements

• Launched three employee resource groups (ERGs)
• Improved employee engagement score to 53% (from 50% in 2021)
• Relaunched early careers programme with 45% female cohort
• Over 30,000 submissions on Don’t Walk By Hazard identification and Good Practice reporting platform with a 95% corrective action closure rate

Governance Achievements

• Implementation of EHS360 Management System
• Pilot study on cradle-to-gate Life Cycle Assessment of products
• ESG questionnaire distributed to top suppliers
• Development of a detailed strategy and plan for 2023 to include a strong focus on our 'TAKE 5' commitment

Climate Goals & Targets

Environmental Challenges

• Overall water usage increased by 11.6% due to volume increases, product mix changes, and water leaks
• LTA rate worsened to 0.28 (from 0.22 in 2021)
• Delayed purchase of green energy credits for German sites
• Challenges in obtaining green energy allocation proofs for Kizad site in UAE
• Scope 3 emissions (approximately 700,000 tCO2e in 2021) require further assessment and reduction strategies

Mitigation Strategies

• Process and infrastructure improvements to reduce water usage (expected impact in 2023)
• Broad programme to improve safety performance, including thinkSAFE training
• Detailed GHG inventory exercise planned for 2023 to address challenges in scope 2 calculations
• Development of a scope 3 emissions strategy and targets for 2023
• Investment in a new EHS management system software platform for improved data analysis and reporting

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• ESG questionnaire for top suppliers
• ESG training planned for top-tier suppliers in 2023

Climate-Related Risks & Opportunities

Physical Risks

• Water scarcity

Transition Risks

• Carbon taxation

Opportunities

• Development of energy-efficient products
• Growth in semiconductor, clean energy, and clean transportation markets

Reporting Standards

Frameworks Used: GRI, TCFD, SBTi

Certifications: ISO 45001 (at 14 sites)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 6 (Clean Water & Sanitation)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)

Our 2030 ESG objectives are consistent with these SDGs.

Sustainable Products & Innovation

• Ceramic cores for turbine blades
• Brush grades for wind turbines
• Collector strips and carbon shoes for electrified rail

Awards & Recognition

• AAA MSCI ESG Rating
• Silver EcoVadis medal
• 'B' CDP Climate Change score
• 'B' CDP Water Security score

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Sustainability
• Safety
• Diversity & Inclusion
• Employee Engagement

Environmental Achievements

• Reduced scope 1 and 2 CO2e emissions by 25% in 2023 (54% below 2015 baseline)
• Reached 72% green electricity procurement
• Reduced overall water usage by 11% and water usage in high-stress areas by 14%

Social Achievements

• Improved lost-time accident (LTA) rate to 0.19 (2022: 0.28)
• Launched female mentoring pilot program
• Completed a pulse engagement survey with 54% engagement score

Governance Achievements

• Met board diversity targets (43% female)
• Accelerated IT modernization program following cyber security incident
• Implemented restructuring program to streamline operations

Climate Goals & Targets

Environmental Challenges

• Cyber security incident in January 2023
• Supply chain disruptions
• Inflation on input costs
• Challenges in labor supply
• Reliance on natural gas
• Water stress in some operating areas
• Heat stress at manufacturing facilities
• Sea level rise in low-lying locations

Mitigation Strategies

• Rapid response and system recovery from cyber security incident
• Accelerated IT modernization program
• Pricing and efficiency savings to offset inflation
• Investment in water recirculation projects
• Investment in R&D for key product families to reduce water use and decarbonize
• Mitigation plans to reduce water consumption at water-stressed sites
• Strategic provision of air-conditioned rest rooms for workers
• Shifting manufacturing to cooler times of day during high heat
• Ongoing monitoring and review of physical portfolio

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Heat stress
• Water stress
• Sea level rise

Transition Risks

• Reliance on natural gas
• Carbon pricing mechanisms

Opportunities

• Growth in faster-growing markets (semiconductors, healthcare, clean energy, clean transportation)

Reporting Standards

Frameworks Used: TCFD

Certifications: Null

Third-party Assurance: ERM CVS (limited assurance)

UN Sustainable Development Goals

• Goal 3 (Good Health and Well-being)
• Goal 6 (Clean Water and Sanitation)
• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 11 (Sustainable Cities and Communities)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

Initiatives contribute to these goals through product development, efficient manufacturing processes, and community engagement.

Sustainable Products & Innovation

• Materials for solar panels, wind turbines, energy storage, and electric vehicles
• Thermal insulation for heat recovery steam generators and fuel cells

Awards & Recognition

• AAA MSCI ESG rating
• 'B' management score for Climate Change from CDP
• 'B-' management score for water security from CDP