Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Integrity & Ethics
• Corporate Governance
• People & Workplace
• Supply Chain
• Community Involvement

Environmental Achievements

• Reduced GHG emissions (Scope 1) by 41% from 2011 to 2015 (from 281,920 MT CO2e to 170,617 MT CO2e)
• Reduced water consumption by 15% from 2014 to 2015
• Reduced energy use by 16% from 2014 to 2015
• Launched Helix initiative and The Helix Innovation Center ($35 million investment) to advance HVACR research
• Achieved 35% annual refrigeration energy savings for a North American restaurant chain using Copeland Scroll® compressors
• Recycled over 23 tons of trash (cardboard and plastic) in three months at Alliance Compressors plant
• Recycled over 400,000 pounds of batteries since 1996
• Achieved 560,000 kWh/year energy savings at Emerson’s Marine Tank Management facilities in Denmark
• Achieved energy savings of 556,000 kWh/year at Jinqiao plant in China and 96,000 kWh/year at Wuqing plant in China
• Longview Power plant improvements resulted in 15% fewer CO2 emissions than the average U.S. coal-fired power plant

Social Achievements

• Launched ‘I Love STEM’ social media campaign to inspire next generation of engineers
• Partnership with Consortium for Graduate Study in Management to increase diversity in workforce
• Partnership with Society of Women Engineers (SWE) for recruitment of female engineering talent
• Ranked in “Top 50 Employers” in Woman Engineer magazine in 2015 and 2016
• Established Women in Engineering Council and internal task force to support diverse workforce
• $35.7 million contributed to charities and nonprofit organizations across the U.S. in fiscal 2015
• $11.8 million commitment to 30+ programs in St. Louis area related to Ferguson Forward initiative
• $5 million contribution to Missouri Historical Society over seven years
• Nearly $1 million donated to China Women’s Development Foundation’s Water Cellars for Mothers project
• Launched “Making a Difference” corporate citizenship program in India focusing on education for disadvantaged youth
• Week of Giving in St. Louis with nearly 300 employees volunteering at local nonprofits
• Rosemount Youth Mentoring Team mentored more than 500 students since 2007
• Help Others and Promote Excellence (HOPE) program in Costa Rica, building homes for low-income families

Governance Achievements

• Annual review and update of Business Ethics Program by senior management and Board of Directors
• Annual all-employee ethics and compliance training
• Independent third-party ethics hotline
• Annual conflict of interest evaluation and reporting process
• Anti-corruption training for all employees with contact with customers, government officials, and suppliers
• Annual audits to ensure appropriate anti-corruption internal controls are in place
• Board of Directors oversight of risk management process
• Annual self-evaluation process for Board of Directors and committees

Climate Goals & Targets

Environmental Challenges

• Declining sales and earnings (addressed through business portfolio transformation)
• Environmental compliance issues (addressed through audits and corrective actions)
• Maintaining a safe and healthy work environment (addressed through global safety standards, training, and audits)

Mitigation Strategies

• Business portfolio transformation focusing on Emerson Automation Solutions and Emerson Commercial & Residential Solutions
• Annual environmental compliance assessments of facilities
• Implementation of global safety and health standards, tracking injury trends, and conducting safety audits
• Corrective actions based on audit findings
• Continuous improvement in safety processes (protective devices, ergonomics, preventive maintenance, security)

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• Standards of Conduct clause in supplier agreements (almost half of Emerson’s supply chain spend)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: CDP

Certifications: LEED

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Copeland Scroll® compressors
• Refrigerants with 50% lower global warming potential
• Automation technologies for renewable energy integration
• Technologies for food waste recycling

Awards & Recognition

• Call2Recycle’s 2015 “Leader in Sustainability” award

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Integrity & Ethics
• Corporate Governance
• People & Workplace
• Supply Chain
• Community Involvement

Environmental Achievements

• Launched Plantweb™ digital ecosystem to improve safety, reliability, production, and energy use for industrial customers.
• Opened The Helix Innovation Center to advance HVACR research and develop more energy-efficient ice machines and refrigeration systems.
• Developed Grind2Energy™ to turn food waste into renewable energy, diverting 7,400 tons of food waste from landfills in 2016.
• Installed over 150,000 electric heat pump units in China, reducing reliance on coal-fired boilers.
• Reduced water consumption at Chengdu, China facility by 5%, saving 444,063 gallons per year.
• Rosemount facility in Slough, UK introduced LED lighting upgrades resulting in energy savings of 249,011 kWh/year and $32,088 in cost savings.
• Chennai, India facility implemented energy-saving projects resulting in energy savings of 6,400 kWh/month.

Social Achievements

• Began unconscious bias training for managers and employees.
• Encouraged the growth of Emerson Women in STEM organization.
• Supported a wide range of community programs and employee volunteering.
• Reduced total recordable incident rate globally for the past five years.

Governance Achievements

• Created a Lead Independent Director position.
• Adopted an amendment to the Company’s Bylaws to provide stockholders with a proxy access right.
• Committed to submitting proposals to stockholders at the 2018 Annual Meeting of Stockholders to amend the Company’s Articles of Incorporation and ratify the exclusive forum Bylaw.

Climate Goals & Targets

Environmental Challenges

• Challenging market conditions and transformational change during the realignment of the business portfolio.
• Increase in global CO2 emissions (2.8% compared to 2015) attributed to increased reporting facilities, new production facilities, and increased production.

Mitigation Strategies

• Implemented energy efficiency measures at facilities.
• Conducted energy audits.
• Sought out new opportunities to reduce the impact of operations on the environment.

Supply Chain Management

Responsible Procurement

• Standards of Conduct clause in supplier agreements.
• Emerson Supplier Code of Conduct.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards 2016

Sustainable Products & Innovation

• Plantweb™, Grind2Energy™, Copeland compressors

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• People & Workplace
• Community Involvement
• Integrity & Ethics
• Corporate Governance
• Supply Chain

Environmental Achievements

• Reduced global CO2e emissions by 31.3% compared to 2016.
• Reduced global water consumption by 5.6% compared to 2016.
• Reduced global energy use by 20.5% compared to 2016.
• Saved the equivalent of 14.5 million kilowatt hours of electricity.

Social Achievements

• Launched "One Emerson" initiative to unify employees around shared values.
• Established a vice president-level position for diversity and inclusion.
• Continued unconscious bias training for leadership teams (over 3,000 managers completed training).
• Growth of Emerson Women in STEM membership to over 1,700 globally.
• Reduced total recordable injury rate globally.

Governance Achievements

• Adopted an amendment to the Company’s Bylaws to provide shareholders with a proxy access right.
• Strengthened ethics and compliance program with annual employee training.
• Implemented an enterprise-wide employee health, safety and environment management software solution.

Climate Goals & Targets

Environmental Challenges

• Workplace accidents
• Need to further increase diversity and inclusion
• Maintaining high safety standards across global operations
• Ensuring supplier compliance with Emerson's Code of Conduct

Mitigation Strategies

• Implementing new software applications globally to improve reporting and oversight for employee safety and environmental measurements.
• Initiating research and sharing of best practices on diversity and inclusion.
• Developing a curriculum for diversity training on unconscious bias.
• Conducting safety and health audits of operations globally.
• Investing in information technology systems and capabilities to better track supplier compliance.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Standards of Conduct clause in supplier agreements
• Site visits of select new and developing suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards 2016

Sustainable Products & Innovation

• Energy-efficient heat pumps
• Microgrid control systems
• Digital twin platform for power plants

Awards & Recognition

• China Charity Award for Women and Children (4 consecutive years)
• Corporate Social Responsibility Innovation Award from China Business News

Environmental Metrics

ESG Focus Areas

• Environmental Management
• Supply Chain
• Employee Engagement
• Workplace Safety
• Diversity and Inclusion
• Corporate Philanthropy
• STEM Education
• Corporate Governance
• Integrity and Ethics

Environmental Achievements

• Reduced energy consumption by just over 16.4 million kilowatt hours across operations.
• Reduced energy costs by more than $61,000 annually and electricity use by more than 663,000 kilowatt hours at ASCO facility in Mexicali, Mexico.
• Saved more than 250,000 kilowatt hours of energy and just over $30,000 per year in electrical costs at Atit, India facility by switching to variable frequency drives.

Social Achievements

• Reduced total recordable injury rate globally by 38% over the past five years.
• Implemented paid parental leave in the United States and in countries where it was not already mandated.
• Improved healthcare program and enhanced vacation and retirement programs for U.S. employees.
• More than 9,000 employees globally have gone through unconscious bias awareness training.

Governance Achievements

• Adopted an amendment to the company’s bylaws to provide shareholders with a proxy access right.
• Removed forum selection bylaw.
• Accelerated the publication of the company’s CSR report.
• Increased communication from the Lead Independent Director.

Climate Goals & Targets

Environmental Challenges

• Reducing greenhouse gas (GHG) emissions.
• Addressing the workforce skills gap.
• Increasing diversity in the workforce.
• Managing a global supply chain with diverse geographies, cultures and business practices.
• Ensuring compliance with environmental regulations and ethical standards across the global supply chain.

Mitigation Strategies

• Engaged outside environmental experts to develop a long-term strategy with time-specific goals to reduce GHG emissions.
• Working with customers on initiatives to help reskill and upskill employees.
• Providing scholarships and grants to educational institutions for young people, especially women and minorities.
• Raising awareness of the importance of STEM education through the “We Love STEM” campaign.
• Investing in information technology systems to better track supplier compliance.
• Conducting periodic reviews with large suppliers to discuss social issues.
• Implementing an online system to help ensure materials compliance across the global supply chain.
• Conducting site visits of select new and developing suppliers.

Supply Chain Management

Supplier Audits: 84% of manufacturing facilities received environmental reviews in 2018 (including 64 third-party audits and 99 self-assessments)

Responsible Procurement

• Supplier Code of Conduct
• Standards of Conduct clause in supplier agreements
• Online contract management platform
• Supplier qualification module

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards 2018

Sustainable Products & Innovation

• LED lighting fixtures
• Sensi Hydro floor heating and air conditioning system
• Sensi smart thermostats
• Grind2Energy solution

Awards & Recognition

• CSR 2019 Socially Responsible Company Distinction (Mexico)
• Best Places to Work for LGBTQ Equality (Human Rights Campaign)
• Top 50 Employer (Woman Engineer Magazine)

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Responsibility
• Governance

Environmental Achievements

• Reduced GHG emissions intensity by 5.8% from the 2018 baseline value.
• Helped divert 80 million tons of food waste from landfills.
• Installed Grind2Energy solution at McCormick Place, diverting virtually 100% of pre-consumer organic waste.

Social Achievements

• Increased the number of certified global facilitators for unconscious bias training to more than 160.
• More than 12,500 employees participated in unconscious bias training since 2016.
• Contributed time, funds, and resources to more than 1,200 charities, nonprofit organizations, and educational institutions globally.
• Implemented a new paid parental leave policy globally.

Governance Achievements

• Board of Directors initiated a comprehensive review of Emerson’s operational, capital allocation, and portfolio initiatives.
• Two new members were added to the Board in 2019.
• Achieved nearly 100% completion rate for annual ethics training.

Climate Goals & Targets

Environmental Challenges

• Workplace injury rate increased slightly due to an isolated foodborne illness incident.
• Skills gap in STEM fields.

Mitigation Strategies

• Implementing a new global safety management system and increasing safety communication efforts.
• Promoting STEM education and awareness of career opportunities, especially among women and minorities.
• Partnering with educational institutions to provide training and curriculum.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Conflict Minerals Statement
• Regional sourcing strategy

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards 2018, UN Sustainable Development Goals

UN Sustainable Development Goals

• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 12
• Goal 17

Various initiatives and programs described throughout the report contribute to these goals.

Sustainable Products & Innovation

• Sensi smart thermostats
• Copeland scroll compressors
• Grind2Energy solution
• Greenlee Gator Insulated Tools

Awards & Recognition

• ENERGY STAR Partner of the Year
• Excellence in Practice Award from the International Association for Talent Development
• Chief Operating Officer Safety Award
• CSR 2020 Socially Responsible Company Distinction (Mexico)

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Responsibility
• Governance

Environmental Achievements

• Reduced CO2 emissions by 10%, global electricity usage by 11%, and global water consumption by 18.5% in 2020.
• Recycled approximately 81% (2 million pounds) of solid waste generated on campus in 2020.
• Reduced electricity consumption by 12% at Professional Tools facility in Remscheid, Germany in FY2020.
• Reduced 450,000 kWh of electricity and 2.2 million m3 of natural gas per year at Climate facility in Rayong, Thailand.

Social Achievements

• Decreased workplace injury rate by 24% compared to 2019.
• Achieved zero recordable injuries at more than 60% of locations.
• Launched "Courageous Conversations," diversity, equity and inclusion forums.
• Launched Diverse Slates recruitment initiative to increase diversity at all levels.

Governance Achievements

• Amended Corporate Governance and Nominating Committee charter to emphasize ESG oversight.
• Formed the Environmental Sustainability Steering Committee.
• Improved proxy access bylaw.
• Reduced director compensation during the COVID-19 pandemic.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacted sales and hampered further GHG emissions reductions.
• Supply chain disruptions due to the pandemic.

Mitigation Strategies

• Implemented strategies and action plans to reduce GHG emissions.
• Distributed energy management and GHG reduction playbook.
• Conducted energy audits to identify site-level opportunities for reduction.
• Implemented online contract management platform and supplier qualification module.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and solutions.

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 27001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 12
• Goal 13
• Goal 17

Emerson's initiatives contribute to these goals through various programs and operations.

Sustainable Products & Innovation

• Plantweb Optics™ Analytics software
• Sensi™ smart thermostat technology
• Copeland™ scroll compressors
• Hydrogen refueling station technologies

Awards & Recognition

• ENERGY STAR Partner of the Year
• Edison Award
• IoT Breakthrough Awards
• Forbes Best Employers for Diversity
• Human Rights Campaign Corporate Equality Index
• STEP Ahead Awards

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced GHG emissions intensity by 20% by 2028 (target)

Social Achievements

• Announced goal to double the representation of women globally and U.S. minorities at the leadership levels by 2030
• Allocated $24.5M in U.S. charitable contributions in 2020
• Donated $3M in U.S. for STEM education in 2020

Governance Achievements

• Formalized Board’s commitment to ESG oversight
• Designated independent Board chair, as of May 2021

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Sustainability
• Diversity, Equity, and Inclusion
• STEM Education
• Net Zero Emissions

Environmental Achievements

• Created lasting momentum in Europe around Sustainability, leveraging everyone's passion to drive impact, collaboration and innovation.
• 5000 Employees participating in Earth Week events and activities
• Green Mobility Challenge with 350+ participants across 21 countries

Social Achievements

• 8,500+ employees attended the Managing Unconscious Bias workshop across Emerson in Europe in 2022.
• “Embrace Differences Day” celebrated across 28 sites with ~3000 colleagues.
• 6 Employee Resource Groups with 3390 Members across Europe
• Prioritize the health and wellbeing of vulnerable youth and historically underrepresented communities

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Climate change

Mitigation Strategies

• Ambition to achieve net zero emissions by 2045
• Absolute Reduction Of value chain emissions by 2030
• Accelerating the adoption of energy transition solutions

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

• Climate Change
• Diversity, Equity & Inclusion
• Governance
• Supply Chain Responsibility
• Employee Wellbeing

Environmental Achievements

• Reduced Scope 1 and 2 GHG emissions intensity by 52% since 2021
• Procured 49% of electricity used by Emerson locations from renewable sources
• Achieved a 41% reduction in energy intensity from 2018

Social Achievements

• Launched company-wide continuous listening strategy with 85% employee participation and an employee engagement score of 78%
• Increased representation in leadership for women globally and US minorities in 2023
• Implemented company-wide wellbeing programs and policies
• $200M pledged to address education equity over 10 years

Governance Achievements

• Board added 7 new Directors in the last five years
• 50% of Directors are women or persons of color
• Achieved CDP Supplier Engagement Leader status for a second year
• Key elements of primary data centers, cloud environments and enterprise IT organization are certified under ISO 27001

Climate Goals & Targets

Environmental Challenges

• Decarbonizing challenging sectors (steel, electronics, plastics)
• Managing Scope 3 emissions across the value chain
• Balancing profitability with environmental sustainability investments

Mitigation Strategies

• Collaboration with suppliers and customers on decarbonization strategies
• Internal carbon pricing for capital investment decisions
• Development of sustainable product and packaging designs
• Engagement with government and industry groups on policy and standards

Supply Chain Management

Supplier Audits: 50 environmental audits (2023)

Responsible Procurement

• Supplier Code of Conduct
• Sustainability requirements for strategic suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Tropical cyclones (East Asia & Pacific)

Transition Risks

• Shift in preferences toward lower emissions technologies

Opportunities

• Development of energy-efficient products
• Growth in energy transition markets

Reporting Standards

Frameworks Used: GRI Standards, SASB, TCFD, UN Sustainable Development Goals

Certifications: ISO 27001 (data centers, cloud, IT)

Third-party Assurance: ERM CVS (limited assurance for GHG emissions)

Sustainable Products & Innovation

• High-Pressure Hydrogen Coriolis flow meter
• Branson ultrasonic plastic welding technology

Awards & Recognition

• CDP Climate Change A- rating
• CDP Supplier Engagement Leader
• ENERGY STAR® Partner of the Year
• EcoVadis Silver rating
• Forbes World’s Top Employer for Women

Environmental Metrics

ESG Focus Areas

• Sustainability
• Decarbonization
• Diversity
• Human Capital Management

Environmental Achievements

• Reduced Scope 1 and 2 GHG emissions intensity by 52% since 2021
• Achieved a 28% reduction in energy intensity from 2021
• 49% of electricity procured from renewable sources at Emerson locations worldwide

Social Achievements

• Completed company-wide employee engagement survey with 89% employee participation, reporting 79.2% favorable engagement
• Trained over 47,000 employees on diversity awareness and unconscious bias since 2014
• 8 employee resource groups with over 13,000 members

Governance Achievements

• Continued Board refreshment with the addition of a new director
• Amended the Company’s Corporate Governance Principles and Practices to enhance director overboarding policy and added director term limits
• Created Technology and Environmental Sustainability Committee

Climate Goals & Targets

Environmental Challenges

• Geopolitical challenges
• Supply chain disruptions
• Labor shortages
• Inflation

Mitigation Strategies

• Disciplined management of the Company’s business and operations
• Continued progress toward cost reset targets
• Focus on safety and wellbeing of employees

Supply Chain Management

Climate-Related Risks & Opportunities