Climate Change Data

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• The unpredictable and reactive nature of our business can create uneven performance in any given quarter or year.
• As our clients’ needs change, new technologies develop, and legal and regulatory processes change, we may be unable to timely hire or train personnel with the appropriate new set of skills and experience which could negatively impact our growth and profitability.
• Failure to attract and retain key employees may adversely affect our business.
• Competition could reduce our pricing and adversely affect our business.
• The loss of a large client could adversely affect our business.
• Our clients may be unable to pay for our services.
• We hold substantial investments that could present liquidity risks.
• Our business is dependent on our professional reputation.
• Our business can be adversely impacted by deregulation or reduced regulatory enforcement.
• Tort reform can reduce demand for our services.
• Our engagements may result in professional or other liability.
• Potential conflicts of interest may preclude us from accepting some engagements.
• We are subject to unpredictable risks of litigation.
• We are subject to security breaches that may disrupt our operations and/or lead to the inability to protect confidential information.
• Failure to protect client and employee data may have an adverse effect on our business.
• Impairment of goodwill may require us to record a significant charge to earnings.
• Impairment of long-lived assets or restructuring activities may require us to record a significant charge to earnings.
• Our international operations create special risks that could adversely affect our business.
• Inherent risks related to government contracts may adversely affect our business.
• Governments may terminate, cancel, modify or curtail our contracts at any time prior to their completion.
• We could incur significant liabilities and suffer negative publicity if people or properties are harmed by the products and systems we sell or the services we offer.
• Changes in, or interpretations of, accounting principles could have a significant impact on our financial position and results of operations.
• Our business can be adversely affected by downturns in the overall economy.
• Our quarterly results may vary.
• The market price of our common stock may be volatile.
• There can be no assurance that we will continue to declare cash dividends or repurchase our shares at all or in any particular amounts.
• Catastrophic events may disrupt our business.
• Climate change may have a long-term impact on our business.
• Our financial condition and results of operations for 2020 are expected to be adversely affected by the recent coronavirus outbreak.

Mitigation Strategies

• We follow an established investment policy to monitor, manage and limit our exposure to interest rate and credit risk.
• In response to competitive forces in the marketplace, we continue to look for new markets for our various technical disciplines.
• We remain focused on selectively adding top talent and developing the skills necessary to expand upon our market position, providing clients with in-depth scientific research and analysis to determine what happened and how to prevent failures or exposures in the future.
• We also remain focused on capitalizing on emerging growth areas, managing other operating expenses, generating cash from operations, maintaining a strong balance sheet and undertaking activities such as share repurchases and dividends to enhance shareholder value.
• We manage, utilize, and store sensitive or confidential client or employee data, including personal data and protected health information. As a result, we are subject to numerous laws and regulations designed to protect this information, such as the U.S. federal and state laws governing the protection of health or other personally identifiable information, including the Health Insurance Portability and Accountability Act, and international laws such as the European Union General Data Protection Regulation.
• While we have taken reasonable steps to prevent and mitigate the damage of a security breach by continuously improving our design and coordination of security controls across our business, those steps may not be effective and there can be no assurance that any such steps can be effective against all possible risks.
• We maintain an investment portfolio primarily consisting of debt instruments with high credit quality and relatively short average effective maturities in accordance with the Company’s investment policy.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

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

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Diversity
• Safety
• Sustainability

Environmental Achievements

• Not disclosed

Social Achievements

• Launched diversity, equity, and inclusion initiatives including recruiting, people development, communication, and outreach programs; $50,000 grant to the United Negro College Fund (UNCF) to fund STEM scholarships for African American students.
• Maintained a safety management program to mitigate occupational hazards and prioritized employee well-being during the COVID-19 pandemic.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting project delays, court closures, travel restrictions, and human participant studies; potential for extended global economic downturn affecting demand for services and receivables collection.
• Unpredictable and reactive nature of business leading to uneven performance.
• Loss of large clients.
• Clients' inability to pay for services.
• Dependence on professional reputation.
• Adverse impact from deregulation or reduced regulatory enforcement.
• Tort reform reducing demand for litigation support services.
• Potential conflicts of interest precluding some engagements.
• Inherent risks related to government contracts.
• Government contract termination, cancellation, modification, or curtailment.
• Failure to attract and retain key employees.
• Professional or other liability from engagements.
• Unpredictable risks of litigation.
• Security breaches disrupting operations and/or leading to inability to protect confidential information.
• Failure to protect client and employee data.
• Risks associated with international operations.
• Significant liabilities and negative publicity if people or properties are harmed by products or services.
• Competition reducing pricing.
• Substantial investments presenting liquidity risks.
• Impairment of goodwill.
• Impairment of long-lived assets or restructuring activities.
• Changes in, or interpretations of, accounting principles.
• Downturns in the overall economy.
• Quarterly results variation.
• Volatile market price of common stock.
• Uncertainty of continued cash dividends or share repurchases.
• Disruption of business by catastrophic events.
• Disruption of business by climate change.

Mitigation Strategies

• Adapted business development, recruiting, and operational approaches to address COVID-19 challenges; accelerated knowledge sharing through webinars and thought leadership; shifted recruiting activities online; established protocols for safe laboratory activities and human participant studies; implemented robust infrastructure for productive remote work; enhanced internal communications; resumed laboratory testing, inspections, and human participant studies; maintained business continuity plan.
• Monitored the impact of the COVID-19 pandemic on cash flows and credit markets; maintained sufficient cash reserves.
• Selectively hiring key talent to expand capabilities; managing other operating expenses; generating cash from operations; maintaining a strong balance sheet; undertaking share repurchases and dividends to enhance shareholder value.
• Established investment policy to monitor, manage, and limit exposure to interest rate and credit risk; followed established investment policy to monitor, manage and limit our exposure to interest rate and credit risk.
• Periodic evaluation for impairment of goodwill and long-lived assets.
• Continuously improving design and coordination of security controls.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Wildfires in California impacting employee commute and connectivity; increasing frequency of extreme weather events and their impact on critical infrastructure.

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

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

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Sustainability

Climate Goals & Targets

Environmental Challenges

• Increasing regulatory scrutiny of sustainability claims
• Growing pressure from investors for standardized sustainability reporting
• Legal challenges related to unsubstantiated sustainability claims (greenwashing)
• Need for more accurate and consistent sustainability disclosures

Mitigation Strategies

• Proactive sharpening of ESG and sustainability reporting
• Scrutinizing sustainability reporting and environmental claims to ensure accuracy and compliance
• Documenting that statements are based on justifiable and widely accepted sustainability metrics
• Utilizing Exponent's SMART approach to setting sustainability goals

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability

Climate Goals & Targets

Environmental Challenges

• Insufficient data collection and analysis approaches for evaluating environmental impacts.
• Data averaging leading to inaccurate and unactionable data.
• Different data collection and analysis methodologies used across stakeholders.
• Lack of individual unit operator data in existing databases like EDGAR-FOOD.

Mitigation Strategies

• Implementing customized, integrated approaches utilizing systems analysis.
• Accurate quantification of operational inputs and outputs, including upstream and downstream processes.
• Multidisciplinary modeling and systems analysis to interpret assessment outputs and translate findings into actionable steps.

Supply Chain Management

Responsible Procurement

• Environmental impact clauses in commercial contracts

Climate-Related Risks & Opportunities

Transition Risks

• Policy and legislative changes

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Impact

Climate Goals & Targets

Environmental Challenges

• Performance Loss in BESS batteries
• Mechanical/Electrical Breakdowns in BESS
• Fire risk in lithium-ion batteries
• Environmental damage from fire suppressant runoff

Mitigation Strategies

• Accurate BESS performance forecasting
• Robust scientific methodology and technical insights for performance projections
• Independent third-party evaluation
• Proactive risk assessments and design failure modes and effects analyses (DFMEAs)

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Increased demand for BESS due to climate change mitigation efforts

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 13 (Climate Action)

BESS contribute to renewable energy integration and grid stability, supporting climate change mitigation.