Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Responsibility
• Employee Well-being
• Community Engagement
• Product Safety
• Ethical Business Practices

Environmental Achievements

• Installed solar arrays at one Minnesota facility to produce clean energy and reduce emissions.
• Improved energy efficiency in facilities through LED lighting.
• Reduced water usage in truck washouts.
• Implemented measures to reduce air pollutants through scrubbers.

Social Achievements

• Provided robust employee benefits package including medical, dental, life, and disability insurance, 401k match, and employee stock purchase plan.
• Maintained a minimum wage of $15/hour and a median employee compensation of $91,452.
• CEO pay ratio of 20:1.
• Average employee tenure of 7 years and average executive tenure of 15 years.
• Supported employee training and development.
• Engaged in community support through donations and volunteer work (Kids in Need Foundation, Feed My Starving Children).
• Supported water safety programs through YMCA.
• Provided crisis response support (COVID-19 pandemic).

Governance Achievements

• Compliance with all applicable laws, rules, and regulations.
• Established a Code of Business Conduct and Ethics with a third-party managed employee hotline for reporting violations.
• Commitment to equal opportunity and non-discrimination.
• Active participation in industry collaborations and trade associations (e.g., National Association of Chemical Distributors).

Climate Goals & Targets

Environmental Challenges

• Managing environmental impacts of operations (air, water, ground).
• Tracking product use-phase resource efficiency.
• Managing chemicals of concern.

Mitigation Strategies

• Focus on inorganic chemistry to avoid persistent environmental chemicals.
• Implementation of engineering controls and proper PPE to mitigate health risks.
• Ongoing reviews and risk management plans for water management.
• Collaboration with customers and partners for responsible sourcing and safe handling of products.
• Continuous improvement of HSE program.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced water use by 60-80% with a new automated truck wash.
• Reduced energy demand through equipment upgrades (VFDs for pumps, fans, compressors).
• Saved nearly 190,000 lbs of CO2 emissions and produced over 60,000 kW of energy from on-site solar panels.
• Repurposed existing building for cooling tower header rebuild, avoiding virgin materials.

Social Achievements

• Named to Newsweek’s list of America’s Most Responsible Companies.
• Commended by the City of St. Paul as a model of corporate and civic leadership.
• Awarded a Great Place to Work® designation (81% of employees rated Hawkins as a great place to work).
• Supported Feeding America, first responders, Lake Street Council, American Red Cross, and YMCA.

Governance Achievements

• Yi “Faith” Tang joined the Board of Directors.
• Maintained compliance with all applicable laws, rules, and regulations.
• Implemented a Code of Business Conduct and Ethics with an employee hotline for reporting violations.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic created challenges in ensuring employee health and safety, serving customer needs, and maintaining supply chain stability.

Mitigation Strategies

• Adhered to CDC-recommended COVID-19 safety measures.
• Adjusted and implemented new policies and procedures for a safer work environment.
• Maintained full operation throughout the pandemic, prioritizing employee and customer safety.

Supply Chain Management

Responsible Procurement

• Supplier Quality Program with risk assessments and third-party audits.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB

Sustainable Products & Innovation

• Aquamin (sustainably derived from seaweed)

Awards & Recognition

• Newsweek’s America’s Most Responsible Companies
• Great Place to Work®

Environmental Metrics

ESG Focus Areas

• Greenhouse Gas Emissions
• Waste Management
• Workforce Health and Safety
• Supply Chain Management

Environmental Achievements

• Reduced Scope 2 GHG emissions by 14% in 2022 (from 11,064 tons of CO2e in 2021 to 9,483 tons in 2022).
• Installed a new energy-efficient boiler, cutting cycle times by 65% and saving almost $200,000 in energy costs annually.
• Helped a wastewater treatment plant eliminate the need for over 2,000 tanker truck loads of sludge annually through innovative microbial treatment.

Social Achievements

• Named to Fortune’s Best Workplaces in Manufacturing & Production in 2022 (second year in a row).
• Certified by Great Places to Work in 2022.
• Awarded one of America’s Most Responsible Companies by Newsweek in 2022 (third year in a row).
• All employees make more than $20 per hour, with a median pay of more than $95,000 and a CEO pay ratio of 23:1.
• Hawkins employees volunteered and packed nearly 18,000 meals for Feed My Starving Children.

Governance Achievements

• Complies with all applicable laws, rules, and regulations.
• Has a Code of Business Conduct and Ethics available online.
• Provides employees with a bilingual, third-party-managed ethics hotline.
• Richard Erstad appointed to the Surface Transportation Board's Railroad-Shipper Transportation Advisory Council (RSTAC).

Climate Goals & Targets

Environmental Challenges

• Total recordable incident rate (TRIR) increased in 2022.
• Managing chemicals of concern and developing alternatives with reduced human and/or environmental impact.

Mitigation Strategies

• Redoubled efforts on safety, focusing on employee engagement and training and an attitude of personal responsibility for working safely.
• Recordable incidents are down substantially in the first months of 2023.
• Enhanced fall protection, tank level gauges and instrumentation for overflow protection.
• Reinforced monthly safety reviews and offered enhanced job shadowing.
• Less than 0.6% of annual revenue is derived from Substances of Very High Concern (SVHC).

Supply Chain Management

Responsible Procurement

• Requires all suppliers to comply with labor laws and practices applicable to the country or countries in which they are doing business, or in which the product is manufactured.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB

Awards & Recognition

• Fortune’s Best Workplaces in Manufacturing & Production (2022)
• Great Places to Work (2022)
• America’s Most Responsible Companies by Newsweek (2022)

Environmental Metrics

ESG Focus Areas

• Greenhouse Gas Emissions
• Waste and Water Management
• Workforce Health and Safety
• Supply Chain Management
• Community Investment
• Apprenticeships
• Ethical Business Practices
• Corporate Governance

Environmental Achievements

• Decreased Scope 1 and 2 greenhouse gas emissions by 1% in 2023 to 43,023 tons CO2e (from 43,386 tons in 2022).
• Stauber (health and nutrition segment) received a gold level certification from Green Business Benchmark (GBB).
• Stauber received Organic Certification by Quality Assurance International (QAI).

Social Achievements

• Hawkins was named one of America’s Most Responsible Companies by Newsweek for the 4th consecutive year.
• Supported apprenticeships in rural water systems through a scholarship program.
• Maintained a Total Recordable Incident Rate (TRIR) of 3.25 over 4 years.
• Provided $3,000 scholarships to ten utility systems for water operator apprenticeships.

Governance Achievements

• Full compliance with all applicable health, safety, and environmental laws and regulations.
• Established a third-party managed ethics hotline for reporting concerns.
• Commitment to strong corporate governance practices.

Climate Goals & Targets

Environmental Challenges

• Increasing miles driven by delivery fleet due to growth.
• Challenges faced by partners in the rural water community in providing clean drinking water (aging infrastructure, evolving regulations).

Mitigation Strategies

• Continuous evaluation and improvement of fleet management and energy consumption in operations.
• Providing critical products and services to support rural water systems.
• Investing in storage and infrastructure to maintain a reliable supply chain.

Supply Chain Management

Responsible Procurement

• Sourcing majority of products within the United States.
• Auditing international suppliers for product quality and safety.
• Requiring suppliers to comply with labor laws and practices.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB

Certifications: Green Business Benchmark (GBB) Gold, Quality Assurance International (QAI) Organic

Awards & Recognition

• America’s Most Responsible Companies by Newsweek (4 years)