Climate Change Data

Graco Inc.

Climate Impact & Sustainability Data (2021, 2023)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:40,613 tCO2e/year (Scope 1 & 2, US manufacturing locations only)
Scope 1 Emissions:9,367 tCO2e/year (US manufacturing locations only)
Scope 2 Emissions:31,246 tCO2e/year (US manufacturing locations only)
Total Energy Consumption:99,575 MWh/year (US manufacturing locations only)
Carbon Intensity:20.43 Metric tons CO2e/$MM Revenue (2021, US manufacturing locations only)

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Reduced energy intensity (MWh/$MM Revenue) from 56.62 in 2020 to 50.10 in 2021.
  • Recycled 12 million pounds of metal annually, saving approximately 19 million kilowatt hours of electricity.
  • Recycled approximately 2 million pounds of cardboard annually.

Social Achievements

  • 90% of Graco employees say it is a great place to work (Fortune Best Workplaces™ Manufacturing & Production).
  • Graco Foundation contributions totaled $1,345,900 in 2021.
  • Employee volunteer hours contributed 3,282 hours to 71 organizations, resulting in $65,643 in donations through the Dollars for Doers program.

Governance Achievements

  • Established a cross-functional ESG Steering Committee in 2018.
  • Conducted a materiality assessment to prioritize ESG efforts.
  • Board of Directors provides oversight of ESG matters.

Climate Goals & Targets

Environmental Challenges

  • Data limitations for international operations in 2021 ESG report.
  • Need to expand data collection capacity for future reporting.
Mitigation Strategies
  • Graco is committed to measuring and reporting performance annually and adding international operations data in future reports.
  • Building ESG data collection capacity.

Supply Chain Management

Responsible Procurement
  • Supplier Code of Conduct covering labor and human rights, health and safety, environmental protection, ethics, and management systems.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, TCFD, UN SDGs, GRI

Certifications: ISO 14001 (Minneapolis and Anoka, MN locations)

Sustainable Products & Innovation

  • LineLazer ES and LineDriver ES battery-powered stripers
  • Husky 3300e EODD Pump
  • Gema OptiFlex® Pro F powder coating system
  • ProBell® Rotary Atomizer

Awards & Recognition

  • Fortune Best Workplaces™ Manufacturing & Production

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:47,641 metric tons CO2e
Scope 1 Emissions:14,247 metric tons CO2e
Scope 2 Emissions:33,394 metric tons CO2e
Renewable Energy Share:31%
Total Energy Consumption:117,654 MWh
Carbon Intensity:21.70 metric tons CO2e/$MM revenue

ESG Focus Areas

  • Energy Efficiency
  • Climate Change
  • Recycling
  • Product Quality and Safety
  • Workplace Health and Safety
  • Customer Relationship and Retention
  • Employee Engagement and Well-being
  • Diversity and Inclusion
  • Data and Cybersecurity
  • Corporate Governance
  • Responsible Sourcing
  • Business Ethics and Integrity

Environmental Achievements

  • Sales of electric powered products made up 24% of revenue.
  • Finalized agreements to purchase renewable energy for two Minnesota facilities.
  • Recycled more than 11,000 gallons of antifreeze and used oil, 18.5 million pounds of metal, approximately 2.1 million pounds of cardboard, and 2.5 million pounds of pallets and wood.
  • Achieved 20% powder material savings through retrofitting with modern Gema powder coating technologies and a 38% annual CO2 reduction from conversion to Gema powder coating technologies.

Social Achievements

  • Recognized as one of Fortune magazine’s Best Workplaces in Manufacturing & Production.
  • Achieved the lowest total recordable incident rate (TRIR) in nearly two decades (2.17).
  • Contributed more than $1.7 million to community nonprofits.
  • Augmented employee charitable efforts with more than $300,000 in contributions and matching donations.
  • Invested $449,000 in scholarships to support STEM students.

Governance Achievements

  • Implemented a Code of Ethics and Business Conduct, reinforced annually through employee training.
  • Established a cross-functional ESG Steering Committee in 2018.
  • Maintained an independent Board of Directors with a majority of independent directors.

Climate Goals & Targets

Environmental Challenges

  • Rapidly evolving ESG reporting landscape.
  • Managing energy usage and related GHG emissions.
  • Cybersecurity risks.
Mitigation Strategies
  • Actively preparing for compliance with evolving ESG reporting standards.
  • Implementing management processes and procedures to manage environmental impact, including installing more efficient equipment.
  • Investing in cybersecurity program to safeguard data and enhance privacy controls, aligned with the Center for Internet Security framework.
  • Regular cybersecurity maturity assessments and penetration testing.

Supply Chain Management

Responsible Procurement
  • Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, TCFD, UN Sustainable Development Goals, Global Reporting Initiative

Certifications: ISO 14001:2015 (two facilities), ISO 9001 (more than 20 facilities)

Sustainable Products & Innovation

  • QUANTM™ electric pumps
  • Ultra QuickShot paint sprayer
  • Stellair automatic spray gun
  • InvisiPac HM10 glue dispensing system
  • Gema powder coating technologies

Awards & Recognition

  • Fortune magazine’s Best Workplaces in Manufacturing & Production