Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Responsibility
• People & Communities
• Governance and Ethics

Environmental Achievements

• Reduced energy used per metric ton shipped from 7.06 GJ to 6.38 GJ
• Increased renewable energy share of total electric energy used from 18.2% to 19.5%
• Reduced landfill waste from 33.86 kg per metric ton shipped to 29.29 kg per metric ton shipped
• Increased total waste recycled from 79.08% to 82.02%
• Reduced CO2e emissions per metric ton shipped from 0.70 metric tons to 0.67 metric tons
• Gradall lighting retrofit saved 1,281,186 kWh of electricity in the first six months, on track for 2,999,391 kWh savings
• Santa Izabel facility in Brazil converted to 100% renewable energy
• Super Products improved sales demo planning, reducing travel miles
• Santa Izabel plant reduced weld gas use by 40%
• Tenco reduced waste-to-landfill by 40%
• Super Products returnable racks eliminated wood pallets

Social Achievements

• Reduced recordable injuries per 100 employees from 4.06 to 3.65
• Implemented various COVID-19 safety measures
• Offered biometric screenings to US-based employees
• Invested in mental health training and resources
• Implemented ergonomic improvements, such as battery-operated pallet jacks
• RhinoAg increased female representation by 17%

Governance Achievements

• 100% of online employees completed Code of Business Conduct and Ethics training
• Implemented anti-phishing training, increasing phishing email detection rate to 89%

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacted business practices and required modifications to protect employee health and safety
• Supply chain disruptions

Mitigation Strategies

• Implemented COVID-19 safety practices
• Limited capital expenditures, rolled back pay increases, restricted travel, reduced inventory, and delayed discretionary spending
• Utilized government programs to assist furloughed employees
• Shifted to virtual safety training and auditing

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Conflict Minerals Policy

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, TCFD

Certifications: ISO 45001 (1 facility)

Third-party Assurance: Strategic Sustainability Consulting (SSC) (limited assurance)

Sustainable Products & Innovation

• Fish Protector
• Schwarze HyperVAC Pure Vacuum Street Sweeper
• Old Dominion Brush Company Eco Mode
• Tiger Corporation Beet Juice Ballast
• Nitehawk single-engine hydraulic sweepers
• Rousseaus E-TP electric arm mowers

Environmental Metrics

ESG Focus Areas

• Energy Management
• Employee Health & Safety
• Product Design & Lifecycle Management
• Materials Sourcing & Efficiency
• Improve operational & energy efficiencies
• Improve employee health & safety
• Improve materials sourcing strategies to manage risk and reduce environmental impacts
• Enhance workforce diversity & inclusion
• Enhance product development to help customers operate efficiently and lower emissions
• Enhanced cybersecurity
• Continue to grow and improve economic performance
• Employee development & retention
• Comply with new product safety & chemical disclosure laws

Environmental Achievements

• 19% reduction in Scope 1 & 2 GHG emissions since 2019
• 10% reduction in total energy consumption since 2019
• Increased renewable electricity to 27% of total electricity consumed
• Over 15% reduction in landfill waste since 2019
• Increased waste recycled to 84%
• 7% reduction in wastewater since 2019

Social Achievements

• Launched a new internal Training Academy
• Improved recruitment processes to increase diversity
• Expanded Board of Directors to nine members, increasing board diversity (three women)

Governance Achievements

• Assigned ESG oversight to the Nominating and Governance Committee
• Appointed first Chief Sustainability Officer
• Created an ESG Executive Team and a Corporate Sustainability Team
• Deployed Green Teams at every Alamo company (over 130 people)

Climate Goals & Targets

Environmental Challenges

• Transition risks related to market shifts towards lower-carbon technologies and potential carbon pricing mechanisms
• Physical risks from extreme weather events and climate variability impacting supply chain and end-user demand
• Scope 3 emissions significantly larger than Scope 1 & 2 emissions

Mitigation Strategies

• Developing lower-carbon solutions for customers
• Collaborating with suppliers and customers to address supply chain disruptions
• Initiating a project to estimate Scope 3 GHG emissions baseline and set future targets
• Investing in new product development and supply chain collaborations to reduce Scope 3 emissions

Supply Chain Management

Responsible Procurement

• Collaboration with suppliers to reduce packaging waste
• Conflict Minerals Policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Climate variability

Transition Risks

• Market shifts towards lower-carbon technologies
• Carbon pricing mechanisms

Opportunities

• Development of lower-carbon solutions
• Growth in demand for products used in climate risk adaptation

Reporting Standards

Frameworks Used: SASB

Certifications: ISO 14001 (Rivard facility in France)

Third-party Assurance: Strategic Sustainability Consulting (SSC) - support, not full assurance

Sustainable Products & Innovation

• Conver C485-E electric mowing boat
• Dixie Chopper electric zero-turn mower concept
• McConnel RC32e fully electric remote control mower
• Rousseau E-TP power arm flail mowers
• AGRIBUGGY2 self-propelled crop sprayer
• Spearhead Stubble Management system
• Old Dominion Brush Eco Mode™
• McConnel Power Arm PA 4830 VFR
• Tenco Wide Wing System (WWS)
• 20 Ton Grain Transshipment trucks
• Harkboot raking system for removing invasive aquatic plants
• Herder Ecochopper mower
• McConnel RC Spot Sprayer

Awards & Recognition

• 2021 Texan by Nature 20 Honoree
• NENnovation awards for Conver C485 and Harkboot raking system

Environmental Metrics

ESG Focus Areas

• Energy Management
• Employee Health & Safety
• Product Design & Lifecycle Management
• Materials Sourcing & Efficiency
• Climate Change

Environmental Achievements

• Reduced absolute electricity consumption by 1,601 MWh compared to 2021.
• Reduced absolute landfill waste by 7% compared to 2021 and 21% below 2019 levels.
• Reduced water usage by 16% year-over-year.
• Improved Scope 1 emissions intensity by 9% compared to 2019.
• Reduced market-based Scope 2 emissions by over 32% compared to 2019.

Social Achievements

• Launched the Alamo Group Learning and Development Academy.
• Significant reduction in total recordable injury rate compared to 2021.
• Positive results in initiatives to attract a more diverse pool of employees and increase diversity in leadership.
• 114 U.S. employees completed frontline leadership program.

Governance Achievements

• All employees completed ethics and code of conduct training.
• Board maintains ultimate responsibility for overseeing ESG matters.

Climate Goals & Targets

Environmental Challenges

• Increased energy consumption (3.5% year-over-year) due to colder weather, higher production volume, and insourcing of production processes.
• Increased natural gas use (11.7%) at four major North American facilities due to an 11.3% increase in heating degree days.

Mitigation Strategies

• Investments in energy-efficient tooling and equipment, facilities consolidation, and production process changes.
• Investments in physical facilities to improve environmental performance and reduce heat loss during winter (2023).
• Investments in building heating systems and heat retention (2023).

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Conflict Minerals Policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Storms
• Variability in precipitation and weather patterns

Transition Risks

• Market transitions to lower carbon technology
• Government imposition of carbon taxes

Opportunities

• Development of low-carbon solutions for customers

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 9001, ISO 14001

Sustainable Products & Innovation

• All-electric Gradall EL 4100 excavator
• All-electric Schwarze M6 sweeper
• Electric-Hybrid Raptor mid-size sweeper
• Timberwolf TW 280HB hybrid-electric woodchipper
• Old Dominion Brush Eco Mode leaf vacuum control systems
• Brazilian Sugar Cane Transshipment Truck
• Conver 485-E fully electric mowing boat
• McConnel PA4830 VFR flail cutter

Environmental Metrics

ESG Focus Areas

• Energy Management
• Employee Health & Safety
• Product Design & Lifecycle Management
• Materials Sourcing & Efficiency
• Climate Change

Environmental Achievements

• Over 22% reduction of GHG emissions intensity since 2019 (using market-based method for scope 2 emissions)
• Reduced absolute energy usage in 2023 despite heightened production activities
• Energy intensity decreased by over 12% compared to 2019
• Total scope 1 and 2 carbon intensity has decreased by 22% compared to the 2019 baseline

Social Achievements

• 9% reduction in OSHA recordable injury rate for 2023, surpassing the 2025 target ahead of schedule
• Zero on-the-job fatalities
• Over 300 employees graduated from the AGILE Leadership Training Program

Governance Achievements

• Strong corporate governance and ethics framework implemented
• All office employees completed annual mandatory Code of Conduct training
• Near Miss reporting emphasized throughout operations

Climate Goals & Targets

Environmental Challenges

• Challenges in reducing solid waste sent to landfills due to excess dunnage from facility consolidations and production rationalization projects
• Regression in water usage reduction compared to the previous year

Mitigation Strategies

• Intensifying efforts in waste reduction and water conservation in 2024
• Investments in upgraded welding and metal cutting technologies to reduce electricity consumption and steel scrap
• Investments to improve the heating efficiency of facilities

Supply Chain Management

Responsible Procurement

• Collaboration with suppliers on product design and specifications
• Supplier risk assessment and performance reviews
• Supply chain transparency inquiries
• Requirements for suppliers to respect human rights

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Storms
• Variability in precipitation and weather patterns

Transition Risks

• Market transitions to lower carbon technology
• Government regulations accelerating energy transition

Opportunities

• Development of low-carbon solutions for customers
• Sales growth from sustainable product development
• Increased demand for products used in extreme weather event cleanup

Reporting Standards

Frameworks Used: SASB, TCFD, GHG Protocol

Certifications: ISO 9001 (some locations), ISO 14001 (one location)

Sustainable Products & Innovation

• Electric and hybrid-electric products in various product categories
• Weight-reduced equipment
• Products with improved fuel efficiency