Climate Change Data

Environmental Metrics

ESG Focus Areas

• Empower our talented global team to contribute in meaningful ways
• Create positive impacts in our communities
• Provide innovative products and services that make the world a better place
• Source responsibly
• Environmental stewardship
• Integrity, compliance, and risk management
• Corporate governance

Environmental Achievements

• Reduced Scope 1 and 2 CO2e emissions by 7% between 2017 and 2018 across EHS significant sites (excluding Altra-divested companies). Carbon intensity decreased by 17%
• 71% of waste recycled at Veeder-Root plant in Altoona, Pennsylvania, saving $5,000 per month
• Hennessy eliminated approximately 4.8 tons of VOCs by switching to powder coating
• Landauer saved over 600 trees per year since initiating a paperless reporting program

Social Achievements

• Earned a perfect score of 100% on the Human Rights Campaign Corporate Equality Index (CEI)
• President and CEO signed the CEO Action for Diversity & Inclusion Pledge
• Fortive Day of Caring resulted in 150,000 volunteer hours, 200 organized community service events, and over 5,000 participants
• Granted 20 new scholarships and 15 renewals through the Fortive Scholarship Program

Governance Achievements

• Added Jeannine Sargent to the Board of Directors
• All members of Audit, Compensation, and Nominating and Governance Committees are independent
• Implemented an Anti-Corruption Program with full implementation across all operating companies

Climate Goals & Targets

Environmental Challenges

• Reducing environmental impact across a large, global organization
• Maintaining high ethical standards across a diverse supply chain
• Addressing climate change risks

Mitigation Strategies

• Implementing the Fortive Business System (FBS) for continuous improvement in EHS
• Establishing a Supplier Code of Conduct (SCOC) and Preferred Supplier program
• Expanding Enterprise Risk Management (ERM) to include deeper analysis of climate change risks

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct (SCOC)
• Preferred Supplier program
• Conflict-free mineral sourcing

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of sustainable products and technologies

Reporting Standards

Frameworks Used: Null

Certifications: ISO 14001, OHSAS-18001 (ISO-45001), ICSRS (at 32 of 92 EHS Significant Sites)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• AccuBin™ software for agricultural inventory management
• ITM51 turbidity sensor for water conservation
• Products using green energetics (PacSci EMC)

Awards & Recognition

• Fortune’s Future 50 list
• Save the City award (GVR Florence)

Environmental Metrics

ESG Focus Areas

• Employee development and growth
• Inclusion and diversity
• Employee experience
• Community service and giving
• Sustainable products and technologies
• Safety as a service
• Saving lives and improving health
• Protecting critical infrastructure
• Environmental footprint
• Sustainable manufacturing
• Employee safety and well-being
• Supply chain standards
• Fair labor standards
• Customer and employee privacy
• Compliance programs
• Enterprise risk management
• Escalation and disclosure process
• Board and governance practices
• Shareholder engagement
• CSR oversight

Environmental Achievements

• Reduced GHG emission intensity by 28.6% from 2017 base year
• Reduced absolute emissions by 8.5% from 2017 base year
• Gems Sensors reduced total landfill disposal to 9% through composting and recycling, diverting over 180 tons of waste.
• SPT improved manufacturing processes, expanding recycling and reusing reclaimed plastic scrap.
• Veeder-Root reduced landfill waste by 56% and waste disposal costs by 67% since 2017.

Social Achievements

• Established the Fortive Foundation to accelerate philanthropic efforts.
• Awarded 43 scholarships and 23 renewals through the Fortive Scholarship Program.
• Employees contributed approximately 64,000 hours of community service through Day of Caring.
• Achieved a perfect 100% in the Human Rights Campaign Corporate Equality Index for the third consecutive year.
• 22% increase in women hired at Gilbarco Veeder-Root India operations through gender-neutral job descriptions and blind resume reviews.
• 3,000+ employees participated in unconscious bias digital learning.

Governance Achievements

• Revised Standards of Conduct (SoC) through a review of external standards and focus groups of over 200 employees.
• Created two new positions: Vice President of Corporate Social Responsibility and Director of Sustainability.
• President and CEO signed the CEO Action for Diversity and Inclusion Pledge.

Climate Goals & Targets

Environmental Challenges

• Maintaining a world-class EHS program while managing isolated, non-job task-related injuries, ergonomics, and residual effects of long-term injuries.
• Achieving GHG emission reduction goals.
• Ensuring 100% annual completion of supplier questionnaires and scheduled audits.

Mitigation Strategies

• Implemented corrective actions such as workplace redesign, ergonomic assessments, refresher education, and ART® to reduce soft tissue impacts.
• Leveraging FBS tools and processes to achieve GHG goals and establish sustainable operational practices.
• Revised auditor training to ensure quality and consistency, and expanding focus to ensure all suppliers comply with the Supplier Code of Conduct.

Supply Chain Management

Supplier Audits: 38% of supplier audits completed in 2019; 20% of top direct materials suppliers audited annually.

Responsible Procurement

• Supplier Code of Conduct
• Supplier Risk Assessment process incorporating elements from the Corruption Perception Index

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 14001 (37 of 98 EHS Significant Sites)

Sustainable Products & Innovation

• ASP sterilization and disinfectant products
• AEROFLEX™ AER with AUTOSURE™ MRC Monitor
• Setra FLEX™ instrument and particle counters
• Censis inventory management software
• GTT smart mobility solutions
• Matco high-voltage test equipment
• LANDAUER dosimeters
• Tektronix oscilloscopes and analyzers
• Fluke Norma 6000 series power analyzers
• Qualitrol DGA-LT1 wireless digital gas analyzer
• Accruent integrated facilities management software
• Gordian Sightlines Campus Sustainability platform
• Gems Sensors water monitoring products
• Anderson Negele ITM-51 sensor
• Gilbarco Veeder-Root Veefil-RT EV charging station
• SPT AccuBin™ Inventory Management System
• Intelex EHSQ platform
• Fluke ii900 Sonic Industrial Imager

Environmental Metrics

ESG Focus Areas

• Climate Change and Greenhouse Gas (GHG) Emissions
• Inclusion and Diversity
• Responsible Supply Chain and Procurement
• Ethics and Compliance
• Business Resilience
• Digital Privacy and Security
• Employee Well-being, Safety, and Health
• Community Engagement and Support

Environmental Achievements

• Achieved a 51.0% reduction in Scope 1 and 2 GHG emissions intensity from 2017 levels across EHS Significant Sites, meeting the 2025 goal four years early.
• Identified potential opportunities to reduce over 680 MTCO2e and annual energy savings of more than $150,000 through energy kaizens.

Social Achievements

• Scored 100% in the Human Rights Campaign Corporate Equality Index for a fifth consecutive year.
• Achieved a 12.3% increase in diverse supplier spend compared to 2020.
• Fortive teams dedicated more than 400,000 hours to support organizations in their local communities through the annual Day of Caring.

Governance Achievements

• Launched a new system and centralized repository for all Fortive global policies.
• Launched a “Policy on Policies” to establish better controls around policy creation, approval, review, and update.
• Released a Conflict of Interest Policy and established an electronic reporting mechanism for Conflict of Interest Disclosure Questionnaires.

Climate Goals & Targets

Environmental Challenges

• Supply chain risks, delivery inefficiencies, and process waste.
• Freight costs and supply chain inefficiencies due to distributed geographies.
• COVID-19 pandemic, economic disruption, and global logistics challenges.

Mitigation Strategies

• Used Visual and Daily Management and Standard Work to reduce supply chain risks and inefficiencies.
• Used Value Stream Mapping, Transactional Process Improvement, and Standard Work to improve agility and reduce waste.
• Developed a COVID-19 Task Force, implemented employee resources, and established guiding principles for a holistic approach to health and safety.

Supply Chain Management

Supplier Audits: 97 audits completed

Responsible Procurement

• Fortive Code of Conduct
• Supplier Code of Conduct
• Supplier Diversity Program

Climate-Related Risks & Opportunities

Physical Risks

• Wildfires
• Hurricanes

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core, SASB Standard for Electrical & Electronic Equipment (RT-EE version 2018-10), TCFD framework, UN Global Compact, UN Sustainable Development Goals

Certifications: ISO 14001/45001

UN Sustainable Development Goals

• 3
• 4
• 5
• 7
• 8
• 9
• 10
• 11
• 12
• 13

Fortive's sustainability pillars and initiatives contribute to these UN SDGs.

Sustainable Products & Innovation

• Products that improve energy efficiency, monitor resource use, and prevent pollution.
• Software-enabled hardware and digital solutions for patient safety in healthcare.
• Operations-focused solutions for worker safety and sustainability.

Awards & Recognition

• Newsweek America’s Most Responsible Companies (3 consecutive years)
• Best Places to Work for LGBTQ Equality by the Human Rights Campaign Foundation (5 consecutive years)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Responsible Supply Chain
• Employee Well-being

Environmental Achievements

• Reduced Scope 1 & 2 GHG emissions by 22.4% from 2019 to 2022
• Expanded Scope 1 and 2 GHG accounting to include over 95% of real estate footprint
• 94% of manufacturing EHS Significant Sites have at least one ISO certification

Social Achievements

• Launched Human Resources Transformation initiative to improve talent acquisition, retention, and rewards
• Employee Engagement score of 78% in 2022 (+1% from 2021, +5% from 2019)
• Inclusion & Belonging score of 82% in 2022 (+2% from 2021, +3% from 2019)
• Over 25,000 hours dedicated to community support through Fortive Day of Caring in 2022

Governance Achievements

• Established an ESG Task Force to advise on disclosure controls and procedures
• Added climate change experience to the skills matrix for Board members
• Incorporated climate-related performance goals for leaders and management

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic
• Climate-related risks (physical and transition)

Mitigation Strategies

• Strengthened supplier relationships and broadened sourcing options
• Reviewed and refined risk assessment process to capture climate-related risks
• Developed a roadmap to conduct quantitative climate scenario analyses
• Developed a renewable energy policy to guide operating companies

Supply Chain Management

Supplier Audits: 100% of suppliers in Responsible Sourcing Audit program screened using environmental and social criteria; audits completed with all significant risk suppliers, no findings required escalation

Responsible Procurement

• Fortive Supplier Code
• Conflict Minerals Report
• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: UNGC, TCFD, UN SDGs, SASB, GRI

Certifications: ISO 9001, ISO 14001, ISO 45001

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 5
• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 11
• SDG 12
• SDG 13

Alignment with SDGs detailed in the report appendix

Sustainable Products & Innovation

• Energy reduction/energy efficiency products
• Carbon reduction products
• Renewable energy enabling/support products

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Responsible Sourcing
• Employee Well-being
• Governance

Environmental Achievements

• Reduced Scope 1 & 2 GHG emissions by 25.6% from 2019 to 2023
• Reduced energy consumption by 13.6% from 2019 to 2023

Social Achievements

• Achieved 78% overall employee engagement score and 82% inclusion and belonging score in 2022 Employee Experience Survey
• Increased BIPOC representation in professional & management roles by 1% from 2022 to 2023

Governance Achievements

• Established an ESG Task Force in 2022 to advise on climate-risk disclosure

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to geopolitical risks and trade policies
• Gathering data for certain SASB metrics

Mitigation Strategies

• Strengthening relationships with strategic suppliers
• Broadening the aperture for prospective suppliers
• Increased preference for local suppliers
• Developing plans to gather data for future reporting cycles

Supply Chain Management

Supplier Audits: Over 200 direct material suppliers assessed in 2023

Responsible Procurement

• Fortive Supplier Code of Conduct
• Responsible Sourcing Audit Program

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UNGC, TCFD, UN SDGs, SASB, GRI

Certifications: ISO 14001, ISO 45001, ISO 9001

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 5
• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 11
• SDG 12
• SDG 13