Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety

Social Achievements

• Working 20 percent more hours with more than 500 fewer injuries, for a TRIR rate of injury that is 63.5% lower than ten years ago.

Environmental Challenges

• Economic downturns leading to reduced demand for services.
• Negative credit market conditions impacting business operations.
• Increases in prices of materials used in operations.
• Fluctuations in energy and commodity prices affecting customers.
• Highly competitive industry with low barriers to entry.
• Adverse weather conditions impacting construction services.
• Difficult work environments affecting efficiency and profitability.
• Dependence on fixed-price contracts.
• Potential for contract cancellations.
• Challenges in generating internal growth.
• Risk of key personnel departure.
• Difficulty in attracting and retaining skilled employees.
• Potential for unionized workforce disruptions.
• Potential liabilities from multiemployer union pension plans.
• Fluctuating foreign currency exchange rates.
• Potential liabilities from non-compliance with environmental laws.
• Potential adverse resolution of litigation.
• Increased governmental regulation as a government contractor.
• Dependence on surety bonds.
• Effective self-insurance against many potential liabilities.
• Impact of healthcare reform.
• Potential liabilities or negative financial impact from occupational, health, and safety matters.
• Risks associated with acquisitions.

Mitigation Strategies

• Commitment to safety training and investment in equipment.
• Strong and liquid balance sheet for organic and acquisitive growth.
• Careful stewardship of cash flow and balanced approach to growth and shareholder returns.
• Strategies to expand service offerings, attract new customers, and increase projects for existing customers.
• Robust occupational, health, and safety programs.
• Due diligence and integration strategies for acquisitions.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced fleet gasoline consumption by more than 840,500 gallons per year, equivalent to taking 1,500 service vehicles off the road and preventing more than 8 million pounds of carbon dioxide from entering the atmosphere.
• Achieved Silver Recognition in EcoVadis 2019 assessment (top 30% of all evaluated companies).

Social Achievements

• Employs over 1,949 veterans.
• Launched EMCOR Touching Lives Program™ supporting NCMEC, breast cancer awareness, and armed forces.

Governance Achievements

• Consistently received the highest governance QualityScore from Institutional Shareholder Services.
• Implemented EMCOR Code of Business Conduct and Ethics.

Climate Goals & Targets

Environmental Challenges

• Reducing the environmental impact of the company's fleet of 11,000+ vehicles.
• Maintaining compliance with environmental regulations.

Mitigation Strategies

• Implementing GPS technology, regular vehicle maintenance and replacement, vehicle-mix modification, and deployment of hybrid and electric vehicles.
• Developing and enforcing a strong compliance program, performance measurement, energy tracking, and accountability to third parties; using the Environmental Overview Handbook.

Supply Chain Management

Responsible Procurement

• Vendor Code of Conduct (covering safety, living wage, anti-slavery requirements)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Global Reporting Initiative (GRI), United Nations Global Compact, ISO 26000

Awards & Recognition

• 2009, 2012, 2016 CNA Chairman’s Award for safety innovation
• 2018 CNA Safety Award recipient for outstanding efforts promoting safety innovation

Environmental Metrics

ESG Focus Areas

• Safety
• Environmental Responsibility
• Governance
• Diversity & Inclusion

Environmental Achievements

• Completed 70 projects certified to third-party multi-attribute sustainability standards (LEED, BREEAM, Green Globes, Envision), representing $2.3 billion in contract value and 7% of total 2020 revenue.
• Recognized approximately $70 million in revenue from renewable energy projects with an aggregate contract value of over $177 million.

Social Achievements

• Achieved a Total Recordable Incident Rate (TRIR) of 1.20, nearly 60% lower than the industry average.
• Implemented diversity and inclusion training for all employees and unconscious bias training for senior leaders.
• Maintained a strong commitment to employee safety and well-being, resulting in a TRIR less than half the industry average for twelve consecutive years.

Governance Achievements

• Maintained strong corporate governance practices, complying with NYSE listing standards and SEC regulations.
• No monetary losses incurred from legal proceedings related to bribery, corruption, or anti-competitive practices.

Climate Goals & Targets

Environmental Challenges

• Impact of global climate change on demand for services (potential decrease in demand for hydrocarbon-related services, potential increase in demand for energy efficiency services).
• Maintaining a zero-injury environment across 85 operating subsidiaries.

Mitigation Strategies

• Implementing strategies to reduce per capita GHG emissions by 20% by 2035 through improved GPS routing, fleet changes, and use of hybrid/electric vehicles.
• Maintaining a strong commitment to safety through comprehensive training, resources, and analytics.

Supply Chain Management

Responsible Procurement

• Vendor Code of Conduct

Climate-Related Risks & Opportunities

Transition Risks

• Decreased demand for hydrocarbon-related services due to shifts in consumer preferences or increased use of alternative energy sources.

Opportunities

• Increased demand for services aimed at mitigating climate change impacts (energy efficiency, renewable energy).

Reporting Standards

Frameworks Used: SASB Engineering & Construction Services Sustainability Accounting Standard

Awards & Recognition

• CNA Safety Award Recipient for Safety Innovation
• MSCI ESG Rating silver recognition
• EcoVadis Sustainability Rating (Top 30%)

Environmental Metrics

ESG Focus Areas

• Safety
• Climate Change
• Energy Efficiency
• Sustainability
• Diversity and Inclusion
• Corporate Governance
• Business Ethics

Environmental Achievements

• Reduced per capita Scope 1 and Scope 2 GHG emissions by achieving a Total Recordable Incident Rate (TRIR) of 1.06 in 2021 (lowest rate ever, nearly 60% lower than the industry average).
• Completed 118 projects certified to third-party multi-attribute sustainability standards (LEED, BREEAM, Green Globes, Envision), representing $3.0 billion in aggregate contract value and 10% of total 2021 revenue.
• Recognized approximately $131 million in revenue from renewable energy projects with an aggregate contract value of approximately $317 million.
• Purchased nearly 25,000 metric tons of carbon credits to offset carbon footprint; invested in the Texas Capricorn Ridge Wind Project.

Social Achievements

• Maintained a strong commitment to safety, achieving a TRIR of 1.06 and a DART rate of 0.48 in 2021, significantly lower than industry averages.
• Provided over 12,000 online safety courses in 2021.
• Offered leadership development programs (Leadership for Results and Leading with Character) to senior executives.
• Implemented diversity and inclusion training for all employees and implicit bias training for senior leaders.
• Supported employee education through tuition reimbursement and the EMCOR Learning Center.

Governance Achievements

• Maintained a strong corporate governance structure with an independent Board of Directors and independent committees.
• Implemented a Code of Business Conduct and Ethics, a Vendor Code of Conduct, and a Global Anti-Corruption Compliance Policy.
• Oversees ESG initiatives through the Nominating and Corporate Governance Committee.
• Had only six instances of non-compliance with environmental regulations in 2021, with only two requiring regulatory reporting and immaterial cumulative costs.

Climate Goals & Targets

Environmental Challenges

• Global shortage of vehicles impacting fuel-efficient vehicle initiatives.
• Impact of global climate change on demand for services (difficult to predict and measure).
• Dependence of industrial services on the strength of oil and gas markets.

Mitigation Strategies

• Working with major vehicle manufacturers to pilot and test more fuel-efficient vehicles.
• Expanding expertise in industrial services to construct and maintain carbon capture technologies and renewable energy resources.
• Implementing programs to increase the number of electric and hybrid vehicles in the fleet and introducing alternative energy solutions at facilities.

Supply Chain Management

Responsible Procurement

• Vendor Code of Conduct

Climate-Related Risks & Opportunities

Transition Risks

• Market or regulatory responses to climate change
• Changes in the specific markets for EMCOR’s services
• Availability of alternative energy solutions and vehicles
• Increased competition

Opportunities

• Increased demand for services aimed at mitigating or addressing climate change impacts.

Reporting Standards

Frameworks Used: SASB, Greenhouse Gas Protocol

Environmental Metrics

ESG Focus Areas

• Greenhouse Gas Emissions
• Sustainability

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions impacting availability and pricing of materials, inflationary trends, fluctuations in energy costs

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• market or regulatory responses to climate change

Opportunities

• participation in the energy transition by leveraging its expertise in industrial services to construct and maintain renewable energy projects, including solar generation. It is also expected to participate in carbon capture technologies

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol, SASB

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Safety
• Workforce Health
• Business Ethics
• Community Engagement
• Inclusivity

Environmental Achievements

• Reduced per capita Scope 1 and Scope 2 GHG emissions (aiming for 20% reduction by 2035 from a 2021 baseline)
• 30-40% per capita reduction in carbon-based fuel consumption across service fleet by 2035 (from 2021 baseline)
• Completed 173 projects certified to third-party multi-attribute sustainability standards (e.g., LEED, BREEAM)
• Recognized $440 million in revenue from renewable energy projects in 2023
• Purchased and retired 59,047 MWh of Green-e certified Renewable Energy Certificates (RECS) to offset US electricity consumption
• Purchased 2,174 Verified Carbon Units to offset emissions from high GWP refrigerants

Social Achievements

• Total Recordable Incident Rate (TRIR) of 1.2 in 2023 (50% lower than industry average)
• Completed over 165,000 safety and compliance courses in 2023
• 40 safety professionals received ASP/CSP, CHST, or STS/STS-C credentials in 2023
• EMCOR Touching Lives Program™ supporting various community initiatives
• Sponsored the 2024 Valero Texas Open and Valero Benefit for Children, raising $24 million for charity

Governance Achievements

• Fully independent Board Committees (Audit, Compensation and Personnel, Nominating and Corporate Governance)
• Established a Sustainability Task Force and Steering Committee
• Created the EMCOR Sustainable Facilities Fund to reduce Scope 1 and 2 emissions

Climate Goals & Targets

Environmental Challenges

• Global shortage of vehicles impacting the transition to more fuel-efficient alternatives
• Difficulty in predicting or measuring the impact of warming average temperatures on business
• Dependence of industrial services on the strength of oil and gas markets
• Data collection challenges for accurate and complete GHG emissions reporting

Mitigation Strategies

• Working with vehicle manufacturers to pilot and test fuel-efficient vehicles
• Improving data collection and assessment processes for more accurate emissions reporting
• Expanding expertise in industrial services to construct and maintain carbon capture technologies and renewable energy resources
• Implementing a companywide carbon footprint analysis and internal programs to track, analyze and improve carbon footprint and energy efficiency

Supply Chain Management

Responsible Procurement

• Vendor Code of Conduct

Climate-Related Risks & Opportunities

Transition Risks

• Changes in consumer preferences or increased use of alternative energy sources impacting demand for industrial services

Opportunities

• Increased demand for services aimed at mitigating climate change impacts

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol, SASB (Engineering & Construction Services)