Climate Change Data

Environmental Metrics

ESG Focus Areas

• Conflict Minerals

Climate Goals & Targets

Environmental Challenges

• Insufficient responses from vendors to determine the specific origin of Conflict Minerals.

Mitigation Strategies

• Developed and sent surveys to approximately 2,700 vendors to confirm whether products contained Conflict Minerals and their origin.

Supply Chain Management

Responsible Procurement

• Company policy committed to working with suppliers to comply with Conflict Minerals Rule.

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Diversity, Equity and Inclusion

Social Achievements

• Formalized commitment to DE&I in 2020, focusing on Infrastructure, Talent Acquisition, Employee Engagement, and Community Engagement; hired a full-time DE&I leader in 2021.

Climate Goals & Targets

Environmental Challenges

• Increased Prices for Raw Materials
• Disruptions to the global supply chain
• Pandemics or similar outbreaks
• Labor shortages, turnover and labor cost increases
• Cybersecurity and Data Breaches
• Changes in Laws and Regulations Governing Data Privacy and Data Protection
• Changes in Tax Rules
• Compliance with Foreign Laws and Regulations
• Changes in Economic Conditions

Mitigation Strategies

• Established pricing terms with several customers through contracts; productivity improvements and other cost-reduction initiatives; comprehensive health and safety protocols to mitigate the spread of COVID-19; cost-reduction initiatives; internal policies and controls, periodic training and internal audits to discourage, prevent and detect violations of laws; partially mitigate cost increases through price realization and cost-reduction initiatives.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Social Achievements

• Matthews views diversity and inclusion (“D&I”) as a priority to be valued and promoted in every aspect of its business.
• Matthews’ D&I strategy focuses on four pillars: Infrastructure, Talent Acquisition, Employee Engagement and Community Engagement.

Climate Goals & Targets

Environmental Challenges

• Changes in Foreign Currency Exchange Rates
• Increased Prices for Raw Materials
• Disruptions to the global supply chain
• Pandemics or similar outbreaks
• Global conflicts may impact the business of the Company and the markets in which it operates.
• Risks in Connection with Acquisitions
• Protection of Intellectual Property
• Environmental Remediation and Compliance
• Technological Factors Beyond the Company's Control
• Changes in Laws and Regulations Governing Data Privacy and Data Protection
• Changes in Tax Rules
• Compliance with Foreign Laws and Regulations
• Changes in Economic Conditions
• Labor shortages, turnover and labor cost increases
• Cybersecurity and Data Breaches
• Effectiveness of Internal Controls
• Compliance with Securities Laws and Regulations; Conflict Minerals Reporting

Mitigation Strategies

• The Company enters into interest rate swaps in order to achieve a mix of fixed and variable rate debt that it deems appropriate.
• The Company has standard selling price structures (i.e., list prices) in certain of its segments, which are reviewed for adjustment generally on an annual basis.
• The Company has established pricing terms with several of its customers through contracts or similar arrangements.
• Matthews’ supply chain operations span several geographies globally and are heavily dependent upon third party logistics and transportation services to deliver the Company’s products to customers.
• The Company has established numerous internal compliance programs to further ensure lawful satisfaction of the applicable regulations.
• The Company is currently performing environmental assessments and remediation at certain sites, as applicable.
• The Company continues to assess, refine and expand its intellectual property portfolio, considering options to pursue additional patent filings and to further develop and continue to maintain processes to identify, inventory and safeguard evolving trade secrets.
• The Company is required to comply with various securities laws and regulations, including but not limited to the Sarbanes-Oxley Act of 2002 and the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”).
• While Matthews maintains a variety of internal policies and controls and takes steps, including periodic training and internal audits, that the Company believes are reasonably calculated to discourage, prevent and detect violations of such laws, the Company cannot guarantee that such actions will be effective or that individual employees will not engage in inappropriate behavior in contravention of the Company's policies and instructions.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Diversity and Inclusion
• Environmental, Health, and Safety

Social Achievements

• Matthews views diversity and inclusion (“D&I”) as a priority to be valued and promoted in every aspect of its business.
• Matthews’ global D&I Council, representative of the Company's diverse workforce from all businesses, regions and cultures, along with multiple local councils and Employee Resource Groups (“ERGs”) focus on priorities across four key pillars: Infrastructure, Employee Engagement, Talent Acquisition, and Community.

Climate Goals & Targets

Environmental Challenges

• Increased prices for raw materials or shortages
• Global conflicts may impact the Company's business and the markets in which the Company operates.
• Pandemics or similar outbreaks may cause unfavorable economic or market conditions, which could impact demand patterns, access to capital and/or disrupt global supply chains and manufacturing operations.
• The Company faces additional global supply chain risks and risks of interruption of requisite logistics and transportation services, including as a result of the Company's reliance on limited suppliers and vendors for certain components, materials, and services.
• Changes in mortality and cremation rates could have a material adverse effect on the Company's cash flows and revenues.
• The Company is subject to competitive pressures, including with respect to product demand and pricing.
• The Company is subject to environmental laws and regulations, as well as environmental remediation and compliance that may lead to significant unforeseen expenses.
• The Company relies on third parties and their systems for a variety of services, including significant information technology services, and the failure of these third parties to provide these services could disrupt the Company's business.
• If the Company is unable to keep pace with technological changes, some of which are beyond the Company's control, the Company may not be able to maintain the Company's competitive position.
• Changing laws and regulations relating to privacy, information security and data protection could increase the Company's costs, and the failure to comply with such laws and regulations could result in significant business disruptions, litigation or enforcement actions.
• Future tax law changes and/or interpretation of existing tax laws may adversely affect the Company's effective income tax rate and require adjustments to the Company's tax estimates.
• The Company operates in a regulated environment that requires the Company's compliance with laws and regulations. Non-compliance could subject the Company to sanctions and materially adversely affect the Company's business.
• The Company's business is affected by general economic conditions, and any economic decline or other circumstances that result in reductions in the Company's customers’ spending could negatively impact the Company's sales volume and revenues.
• The Company's results of operations could be adversely affected by labor shortages, turnover and labor cost increases.
• The Company relies on information technology to operate the Company's business. Security breach incidents and breakdowns of information technologies, or failure to comply with laws governing data privacy and data protection, could disrupt the Company's operations, subject the Company to legal claims, and impact the Company's financial results.
• If the Company fails to maintain effective internal controls over financial reporting at a reasonable assurance level, the Company may not be able to accurately report the Company's financial results, and may require the restatement of previously published financial information, which could have a material adverse effect on the Company's operations, investor confidence in the Company's business and the trading price of the Company's securities.
• The Company's efforts to comply with Dodd-Frank and other evolving laws and regulations could result in increased costs and expenses related to compliance and potential violations.

Mitigation Strategies

• The Company has established numerous internal compliance programs to further ensure lawful satisfaction of the applicable regulations.
• Matthews continually improves its EHS management system and performance by setting measurable EHS objectives and targets, regularly reviewing progress, and implementing corrective actions when necessary.
• The Company has implemented a cybersecurity program designed to protect its information systems and to assess, identify and manage material risks from cybersecurity threats.
• The Company expects to partially mitigate these cost increases through price realization and cost-reduction initiatives.
• The Company initiated cost reduction programs during the fourth quarter of fiscal 2024, which are primarily focused on the Company's engineering and tooling operations in Europe, as well as the Company's general and administrative functions.

Supply Chain Management

Climate-Related Risks & Opportunities