Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Provides sophisticated water samplers and flowmeters to monitor wastewater, irrigation flow, storm water, industrial discharge, construction site run-off and municipal wastewater collection, treatment and reuse.
• Hazardous gas detection monitors making industrial workplaces safer.
• Precision air quality instruments measure common air pollutants (NOx, SO2, CO, ozone, PM10 and PM2.5).
• Visible and infrared imaging sensors enable NASA’s Orbiting Carbon Observatory 2 and GeoCarb missions that measure carbon dioxide and methane in the Earth’s atmosphere.
• Floats, gliders and instruments assist climate research by providing access to accurate data, including subsurface temperatures and velocities of currents throughout the world’s oceans.
• Works with maritime agencies around the world, preserving free and safe navigation of the world’s oceans.
• Supports ocean cleanup agencies with both airborne and space-based instruments that track and analyze floating plastics.

Social Achievements

• Progress in promoting diversity and inclusion; approximately one-third of executive management team and Board of Directors are women.
• Investments in projects to develop and secure tomorrow’s long-term energy sources.
• Support for local charities and participation in volunteer opportunities.
• Products enhance the reliability and safety of global transportation and protect the security of the nation, military and allies.
• Partnerships with local universities to provide mentor and internship programs, especially for STEM students.

Governance Achievements

• Operates within a Code of Ethical Business Conduct with four key pillars: Integrity, Respect, Responsibility and Citizenship.
• Board of Directors and its committees regularly review matters related to compliance with environmental laws and the health and safety of employees.
• Continuously evaluates policies and practices and monitors efforts in areas of legal and social responsibility, diversity and sustainability.

Climate Goals & Targets

Environmental Challenges

• Escalating global trade tensions and the adoption or expansion of tariffs and trade restrictions.
• Material amount of total revenues derived from the oil and gas industry, a historically cyclical industry.
• A new global recession or an economic downturn in China.
• Indebtedness and any failure to comply with covenants.
• Risks associated with international sales and operations.
• Brexit-related uncertainty.
• Acquisitions involve inherent risks.
• Changes in future business conditions could cause business investments, goodwill and other long-lived assets to become impaired.
• United States and global responses to terrorism, increasing tension between the U.S., and Russia, China and Iran; concerns regarding nuclear proliferation and the safety of nuclear energy; potential epidemics such as the Coronavirus; continuing turmoil in Middle Eastern countries; and potential future financial issues impacting airlines and volatile energy prices.
• Revenue from government contracts depends on continued availability of funding.
• Government contracts are subject to termination rights.
• Government contracting regulations, including cybersecurity regulations.
• Pension expense and the value of pension assets are affected by factors outside of our control.
• Business and operations could suffer in the event of cyber security breaches.
• May not have sufficient resources to fund all future research and development and capital expenditures or possible acquisitions.
• May be unable to successfully introduce new and enhanced products in a timely and cost-effective manner or increase our participation in new markets.
• Technological change and evolving industry and regulatory standards could cause some of our products or services to become obsolete or non-competitive.
• May not be able to reduce the costs of our products to satisfy customers’ cost reduction mandates.
• The airline industry is heavily regulated.
• Increasing competition.
• Product liability claims, product recalls and field service actions.
• Conditions and other factors associated with our suppliers.
• Risks related to sales through distributors and other third parties.
• Compliance with increasing environmental and climate change regulations, as well as the effects of potential environmental liabilities.
• Inability to attract and retain key personnel.
• May not be able to sell or reconfigure businesses, facilities or product lines.
• Natural and man-made disasters.
• May not be able to enforce or protect intellectual property rights.
• Higher tax rates.

Mitigation Strategies

• Continuously works to mitigate the impact of tariffs and trade restrictions.
• Aggressively pursues operational excellence to continually improve margins and earnings.
• Monitors the ARRC transition plan and evaluates potential related risks.
• Takes measures to mitigate foreign currency exchange rate risks.
• Conducts financial and other due diligence in connection with acquisitions.
• Tests goodwill and other indefinite-lived intangible assets for impairment.
• Continues to train personnel and update infrastructure, security tools and processes to protect against security incidents.
• Seeks governmental support and funding for research and development initiatives.
• Intends to both adapt existing technologies and develop new products to expand into new market segments.
• Has property insurance to partially reimburse for losses caused by windstorm and earth movement.
• Has disaster recovery and business continuity plans.
• Seeks to enforce and protect intellectual property rights.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Precision measurement technologies for environmental monitoring and climate research.
• Sensors and instruments deployed for measuring greenhouse gases, monitoring air and water quality, and profiling Earth’s oceans.

Environmental Metrics

ESG Focus Areas

• Greenhouse gas emissions
• Workplace safety
• Employee diversity
• Management diversity
• Board of Directors diversity
• Sustainability

Environmental Achievements

• Compiled the first global inventory of Scope 1 and Scope 2 Greenhouse Gas (GHG) emissions (starting with fiscal year 2020)
• Developing a GHG monitoring and management plan
• Set a goal to reduce combined Scope 1 and Scope 2 emissions, normalized for revenue, by 40% from 2020 levels by the end of fiscal year 2040

Social Achievements

• Formed a committee to oversee equality, diversity and inclusion efforts in 2020
• Piloting an anonymized review/resume redaction process
• Expanded recruitment sources to attract more diverse candidates
• Working with outreach programs (National Society of Black Engineers, Society of Women Engineers, INROADS)
• Regularly review policies, processes and practices to ensure inclusivity
• Launched Teledyne University, a learning platform for employees in 2020
• Voluntary employee turnover (excluding reductions in force) was approximately 10% in 2021

Governance Achievements

• Achieved investment-grade credit ratings from all three principal rating agencies in 2021

Climate Goals & Targets

Environmental Challenges

• Supply chain constraints and price volatility on some raw materials in 2021
• Component and raw material shortages due to worldwide supply chain constraints
• Increased prices for components and raw materials, higher labor and shipping costs
• Inability to attract and retain key personnel and labor shortages
• Government-imposed vaccine mandates could negatively affect personnel availability or lead to attrition
• Escalating global trade tensions and tariffs
• Conflict between Russia and Ukraine
• Recession, financial and credit market disruptions, or economic slowdown in China
• Risks associated with international sales and operations
• Currency exchange rate fluctuations
• Risks associated with sales through distributors and other third parties
• Climate change impacts on operations and supply chain
• Climate change regulations
• Investor sentiment towards climate change and sustainability
• Natural and man-made disasters
• Inability to enforce or protect intellectual property rights
• Cybersecurity breaches
• Provisions of governing documents making acquisition more difficult

Mitigation Strategies

• Implemented short-term and long-term supplier actions to reduce supply disruptions
• Committed to additional orders or longer-term contracts from suppliers
• Mitigating raw material cost increases with long-term supply agreements, customer price increases
• Succession planning
• Engaging in outreach and development efforts for women in STEM
• Actions to reduce headcount across various businesses and exit facilities
• Integrating FLIR into our businesses
• Utilizing foreign currency forward contracts, cross currency swaps, and interest rate swaps to mitigate market risks
• Continuously work to reduce manufacturing and other costs of products
• Training personnel and updating infrastructure, security tools and processes to protect against security incidents
• Contingency plans in place for significant impacts from COVID infection resurgences

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events (hurricanes, ice storms, wildfires)
• Rising sea levels
• Decreased access to water and reliable energy

Transition Risks

• Regulatory changes to address climate change (GHG emission reductions, carbon tax, fuel/energy taxes)
• Reduced demand for hydrocarbon products
• Investor pressure regarding sustainability disclosures and practices

Sustainable Products & Innovation

• Precision measurement technologies for environmental monitoring and climate research (sensors and instruments deployed in space, on aircraft, land, sea, and seafloor)

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Reduced carbon emissions (details not quantified in the provided text)
• Developed hydrogen generators which provide a renewable, clean, alternative fuel source that significantly reduces carbon emissions

Social Achievements

• Not disclosed

Governance Achievements

• Completed a deliberate succession plan

Climate Goals & Targets

Environmental Challenges

• Weakening in certain markets, such as laboratory instrumentation, industrial automation, and electronic test and measurement
• Higher inflation, including wage competition and higher shipping costs
• Labor shortages and competition for skilled personnel

Mitigation Strategies

• Focus on growth in businesses with favorable markets
• Cost reduction and margin protection in challenged businesses
• Continued investment in synergistic and accretive acquisitions

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

• Hydrogen generators

Awards & Recognition

• Not disclosed