Climate Change Data

Environmental Metrics

Environmental Achievements

• Mercury earned “Green Master” designation from the Wisconsin Sustainable Business Council for the sixth consecutive year, a program measuring a broad range of sustainability issues ranging from energy and water conservation to waste management, community outreach and education.

Climate Goals & Targets

Environmental Challenges

• During 2016, we experienced some shortages or delayed delivery of certain materials, parts and supplies essential to our manufacturing operations.
• In 2017, we anticipate our suppliers will need to increase their manufacturing operations to meet the rising demand for their products and, in many cases, may need to hire additional workers in order to fulfill the orders placed by us and other customers.

Mitigation Strategies

• We have addressed and will continue to address this issue by identifying alternative suppliers, working to secure adequate inventories of critical supplies and continually monitoring the capabilities of our supplier base.
• We also continue to expand our global procurement operations to better leverage purchasing power across our divisions and to improve supply chain and cost efficiencies.
• We mitigate commodity price risk on certain raw material purchases by entering into fixed priced contracts to mitigate exposure related to changes in commodity prices.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Innovation Awards at the 2016 International Boatbuilders Exhibition and Conference (VesselView Mobile and Electronic Steering Helm)

Environmental Metrics

ESG Focus Areas

• Sustainability
• Diversity

Environmental Achievements

• Mercury Marine received a “Green Masters” designation for the ninth consecutive year from the Wisconsin Sustainable Business Council, exceeding goals related to energy, environment, products, and people.
• Mercury Marine's Fond du Lac distribution operation declared a "Zero Waste to Landfill Facility"
• Mercury Marine received the 2019 Sustainable Process Award for responsible stewardship of aluminum.

Social Achievements

• Mercury Marine jointly received the Most Innovative Marine Company Award for its commitment to sustainability and diversity training.
• Brunswick acquired Freedom Boat Club, expanding access to boating.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Challenging retail environment during the first half of 2019 with volumes stabilizing in the second half.
• U.S. engine and boat operations experienced total industry powerboat retail unit declines of 5 percent in 2019.
• Denial of exemption requests for Section 301 tariffs negatively affected the business.
• Changes in U.S. trade policy, tariffs, and import/export regulations.
• Changes in currency exchange rates.
• Weakening demand for marine products could hurt dealers’ financial performance.
• Adverse weather conditions, climate events, or regulatory policies.
• Catastrophic events, including natural and environmental disasters.
• Loss of key customers.
• Higher energy and fuel costs.
• Inadequate intellectual property protection.
• Inability to identify and complete targeted acquisitions.
• Inability to successfully integrate acquisitions.
• Risks associated with the franchise business model of Freedom Boat Club.
• Competitive pricing and other pressures.
• Difficulties or delays in product development.
• Exposure to potential claims and litigation.
• Compliance with environmental, health, safety, zoning, and other laws and regulations.
• Changes in income tax laws or enforcement.

Mitigation Strategies

• Processes to regularly review, manage, and modify strategic plans.
• Hedging programs to reduce risk to currency fluctuations.
• Continually monitoring key customer relationships and maintaining a complete and competitive product lineup.
• Investing in automation and improving efficiency.
• Regularly monitoring and making improvements to wages and benefit programs, as well as developing and improving recruiting and training programs.
• Identifying alternative suppliers for key materials and components, working to secure adequate inventories of critical supplies, and continually monitoring the capabilities of its supplier base.
• A global, enterprise-wide program to address, review, and report on product integrity issues.
• Maintaining adequate insurance coverage.
• Using its environmental management system processes to drive sustainable, responsible practices.
• Rigorous due diligence and continual review of target acquisitions.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather
• Changing sea levels
• Changes in sea, land and air temperatures
• Poor water conditions
• Reduced access to water

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Most Innovative Marine Company Award (Mercury Marine)
• International Forum Design (iF) award (Mercury Marine)
• 2018 Manufacturer of the Year Award (Mercury Marine)
• 2018 Casting of the Year Award (Mercury Marine)

Environmental Metrics

ESG Focus Areas

• Sustainability
• Diversity, Equity and Inclusion (DEI)
• Employee well-being
• Environmental responsibility

Environmental Achievements

• Mercury Marine received a "Green Masters" designation for the tenth consecutive year from the Wisconsin Sustainable Business Council.
• Mercury Marine won the 2020 Energy Efficiency Excellence Award by Wisconsin's Focus on Energy program.
• Fort Wayne Operations achieved Zero Waste to Landfill Status in 2020, with more than 90% of the plant's waste materials being recycled, reused, or otherwise sustainably eliminated.

Social Achievements

• Established an enterprise-wide Diversity, Equity and Inclusion (DEI) team.
• Forbes named Brunswick to its lists of Best Employers for Veterans and Women and America's Best-in-State Employers for both Wisconsin and Minnesota.
• Implemented paid parental leave and a robust wellness program.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic.
• Higher energy and fuel costs.
• Competitive pricing pressures.
• Adverse weather conditions and climate change events.
• Global economic conditions and market volatility.
• Currency exchange rate fluctuations.
• Maintaining effective distribution through third-party dealers and distributors.
• Cybersecurity and technology risks.
• Intellectual property protection.
• Compliance with environmental, health, safety, and other regulations.

Mitigation Strategies

• Developed and implemented pandemic plans and operations to ensure the continuation of safe and reliable service to customers and to maintain the safety of its employees.
• Implemented manufacturing efficiency enhancements.
• Entered into fixed-priced contracts or derivatives to mitigate exposure related to changes in commodity prices.
• Increased production and hired and retained sufficient skilled hourly labor to meet increased demand for its products.
• Implemented programs to detect, contain, and respond to data security incidents and provided employee awareness training regarding cyber risks.
• Upgraded, streamlined, and integrated IT systems.
• Maintained a complete and competitive product lineup to mitigate the risk associated with reliance on key customer accounts.
• Improved supply chain and cost efficiencies.
• Implemented processes to regularly review, manage, and modify its strategic plans.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Fathom e-Power system

Awards & Recognition

• Green Masters designation (Mercury Marine)
• 2020 Energy Efficiency Excellence Award (Mercury Marine)
• CES 2021 Innovation Awards Best of Innovation Honoree (Mercury's 1st Mate Marine Safety and Security System)
• 2020 IBEX Innovation Award (Attwood)
• Aftermarket Product of the Year (Progressive Industries)
• National Marine Manufacturers Association Innovation Award (Sea Ray)
• Finalist for the European Powerboat of the Year Award (Bayliner Trophy 22CC)
• Best of Boats 2020 Award (Quicksilver 805 Pilothouse)
• America's Best-In-State Employers 2020 (Forbes, Minnesota)
• Top 150 Workplace 2020 (Minneapolis Star Tribune, New York Mills Operation)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Stewardship
• Sustainability

Environmental Achievements

• Achieved zero-waste-to-landfill designation at Kellogg Marine Parts & Accessories distribution center.
• Installed new robotic cells for propeller manufacturing, reducing landfill waste and wastewater.
• Installed solar PV array at Mercury Marine's Fond du Lac headquarters.
• Implemented energy efficiency initiatives at Mercury Marine Fond du Lac, resulting in significant energy savings.

Social Achievements

• Brunswick Foundation distributed $455,000 in conservation and community-focused grants.
• Navico transitioned to 100% recyclable and sustainable packaging, reducing plastic waste.

Governance Achievements

• Established board-level oversight of climate-related issues.
• Added a Chief Sustainability Officer role.

Climate Goals & Targets

Environmental Challenges

• Increased costs and reduced demand due to stricter emissions standards and regulations.
• Potential impacts from the European Union Battery Directive.
• Adverse weather conditions and climate change trends affecting demand and production.
• Supply chain disruptions due to extreme weather events.
• Challenges in transitioning to lower-emission technologies.

Mitigation Strategies

• Developing electric propulsion products and electric boat forms.
• Investing in R&D for alternative fuel technologies and recyclable materials.
• Implementing energy efficiency initiatives and renewable energy projects.
• Risk mitigation actions and building improvements at Florida facilities.
• Collaborating with suppliers on sustainable packaging and recyclable materials.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Sustainable packaging requirements
• Collaboration on recyclable materials

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events
• Rising sea levels
• Changes in precipitation patterns
• Megadrought impacting water levels

Transition Risks

• Stricter emissions regulations
• Market shifts towards electric boats
• European Union Battery Directive

Opportunities

• Development of electric propulsion systems
• Development of recyclable fiberglass boats
• Renewable energy projects
• Development of battery-powered genset alternatives

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol

Certifications: Null

Third-party Assurance: Third-party limited assurance

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Electric outboard motors (Avator)
• Recyclable fiberglass boats
• Battery-powered genset alternatives

Awards & Recognition

• 2022 Newsweek list of America’s Most Responsible Companies
• Industry Top-Rated Company by Sustainalytics
• Wisconsin Green Masters designation
• Association of Energy Engineers (AEE) Corporate Energy Management Award

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Diversity, Equity, & Inclusion (DEI)

Environmental Achievements

• Achieved Zero-Waste-to-Landfill status at nine new locations
• Mercury Marine achieved Green Masters designation for the 12th year in a row
• Mercury Marine completed major energy efficiency installations expected to save 2.2 million kWh of electricity and 136,000 therms of natural gas per year
• Installation of solar panels at facilities in three global locations
• LED lighting upgrades at various global facilities
• Mercury Marine announced a partnership with Alliant Energy to build a 5 MW solar array in Fond du Lac, Wisconsin
• Reporting on overall enterprise carbon emissions footprint for the first time

Social Achievements

• Brunswick’s five employee resource groups hosted 20+ events, and formed 6 partnerships supporting diversity in recreational boating
• Recordable incident rate declined from 1.62 in 2021 to 1.34 in 2022
• Brunswick reported no fatalities in 2022

Governance Achievements

• 9 of 10 Directors are independent under the standards set forth in the NYSE Listed Company Manual
• Our directors collectively attended 93% of the 2022 board and committee meetings
• 30% of the board is female, including our Non-Executive Board Chair
• Median director tenure is 6.9 years
• 92.8% approval in 2022 Say-On-Pay vote

Climate Goals & Targets

Environmental Challenges

• Residual pandemic impacts
• Supply chain disruptions
• Significant macro-economic and geopolitical headwinds
• Inflation and rising interest rates
• Demand pressures in some portions of the business

Mitigation Strategies

• Fortified balance sheet with a $750 million bond issue at favorable rates
• Pivoted from M&A to increased share repurchases, completing $450 million of purchases in the year
• Maintained earnings through diligent control of operating costs

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Mercury Marine launched the new Avator™ electric outboard
• Veer boat brand designed for electrification

Awards & Recognition

• Forbes World’s Best Employer
• Forbes Best Employer for Diversity
• Forbes Best Employer for Veterans
• Newsweek America’s Most Responsible Companies (third consecutive year)
• Forbes America’s Best Large Employers (fifth consecutive year)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Waste Reduction
• Water Reduction
• Diversity, Equity, & Inclusion
• Occupational Safety

Environmental Achievements

• Activated on-site solar arrays at two additional facilities (for a total of seven facilities)
• Completed energy efficiency upgrades at more than 15 facilities
• Expanded (to 22) the number of facilities diverting 90% or more of operational waste to recycling and away from landfills
• Mercury’s Suzhou, China manufacturing facility converted to a powder paint system, which is expected to reduce water consumption by 8 million gallons per year.
• System improvements at Mercury Marine’s Fond du Lac, WI campus are expected to reduce water usage by 6 million gallons per year.
• Boat Group’s Reynosa, Mexico facility introduced an osmosis wastewater recovery system to reduce water consumption by an estimated 10% per year.

Social Achievements

• Grew the number of participants in our employee resource groups (ERGs) to over 1,000 participants, up 100% over 2022.
• Refreshed Brunswick’s Employee Value Proposition, emphasizing our commitment to innovation, drive for results, exceptional execution, and a culture of unity and authenticity.

Governance Achievements

• Improved 2023 CDP Climate Change Survey rating of B

Climate Goals & Targets

Environmental Challenges

• Continued consumer hesitancy, primarily associated with our value product lines

Mitigation Strategies

• Disciplined control of field inventory levels in the second half of 2023, matching our production with retail, and remaining extremely focused on delivering steady free cash flow

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Mercury Marine’s Avator electric outboard product line
• Veer, an award-winning brand designed to support electric propulsion
• Fliteboard, a world leader in electric foiling technology

Awards & Recognition

• More than 100 major awards for its products, brands, and culture
• Forbes recognized Brunswick as one of America’s Best Large Employers for the fourth consecutive year, as well as a World’s Best Employer; Best Employer for Diversity; and Best Employer for Veterans.
• Newsweek as one of America’s Most Responsible Companies for the fourth consecutive year.
• Third CES Innovation Award for the 20e and 35e Avator electric outboard motors