Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Protection
• Safety
• Social Commitment
• Diversity & Inclusion
• Human Rights

Environmental Achievements

• Avoided 3.3 million tonnes of CO2 emissions (0.8 million tonnes direct, 2.5 million tonnes indirect) compared to 2009.
• Reduced water consumption (excluding once-through water) to 54.8 million cubic meters in 2016 (2015: 52.6 million cubic meters).
• Achieved a recycling rate of about 33 percent for waste produced worldwide.

Social Achievements

• Provided funding of around EUR 7.8 m for projects and initiatives worldwide, reaching more than one million children, school pupils and students.
• Supported over 750 employees who volunteered around the world.
• Organized 54 internships for refugees in Germany.

Governance Achievements

• Issued a declaration of compliance with the German Corporate Governance Code.
• Implemented a global compliance organization focused on antitrust law, anti-corruption, export control, and data protection.
• Conducted more than 80 audits at business locations covering social topics such as safe and fair working conditions.

Climate Goals & Targets

Environmental Challenges

• Weak global economic growth (2.2% in 2016, down from 2.7% in 2015).
• Continued low oil prices negatively impacting investment activities.
• Increased competition in the gases and engineering sectors.
• Cost pressure and aggressive competitive environment.
• Price reductions in the US healthcare sector due to government tenders.

Mitigation Strategies

• Launched the LIFT program to further optimize portfolio and reduce costs by around EUR 370 million annually from 2019.
• Continued implementation of the Focus program to reduce costs by around EUR 180 million from 2015-2017.
• Pursuing a merger of equals with Praxair to create a global market leader.
• Strengthening regional responsibility to accelerate local restructuring measures.
• Investing in digital distribution channels and process automation.

Supply Chain Management

Supplier Audits: More than 900 suppliers assessed in 2016.

Responsible Procurement

• Global Code of Conduct for Suppliers covering safety, environmental protection, labor rights, human rights, and corporate integrity.

Climate-Related Risks & Opportunities

Opportunities

• Rising demand for natural gas.
• Increased climate protection efforts creating opportunities for CO2 reduction and recycling solutions.
• Growing importance of hydrogen technology.

Reporting Standards

Frameworks Used: German Corporate Governance Code, IFRS, HGB, Greenhouse Gas Protocol

Certifications: ISO 14001, ISO 9001, OHSAS 18001, FSSC 22000

Third-party Assurance: KPMG AG Wirtschaftsprüfungsgesellschaft

Sustainable Products & Innovation

• ADDvance™ O2 precision technology for 3D metal printing.
• AVANTO™ process management system for welding.
• LIV® IQ medical oxygen cylinders with digital monitoring.
• LoTOx™ technology for capturing and storing nitrogen oxides.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Efficiency
• Water Management
• Waste Reduction
• Safety
• Employee Well-being
• Diversity & Inclusion
• Human Rights
• Supply Chain Sustainability
• Compliance
• Stakeholder Engagement

Environmental Achievements

• Avoided 4.1 million tonnes of CO2 emissions (0.9 million direct, 3.2 million indirect) since 2009.
• Reduced CO2 emissions by around 10,000 tonnes per year through an air separation plant overhaul in China.
• 170 projects identified to reduce energy consumption, resulting in cost savings of over EUR 18 million and a reduction of 126,000 tonnes of CO2 emissions.
• 790 million cubic meters of water brought up to drinking water quality at customer sites in six countries using SOLVOCARB® process.
• Reduced energy consumption by around 4% at an air separation plant in Ningbo, China, saving around 10,000 tonnes of CO2 and EUR 1.5 million.

Social Achievements

• EUR 6.7 million funding for 200 social projects and initiatives worldwide.
• Supported 1,000 Linde volunteers globally.
• Reached 1 million children, school pupils, and students through various initiatives.
• Improved health insurance benefits for employees in the Engineering Division in Russia.
• Increased paid sick leave for employees in the Healthcare segment (Lincare, US).

Governance Achievements

• Established a Group-wide framework for handling risks and dangerous situations.
• Developed a multi-layer defense system to protect against cyberattacks.
• Provided training on antitrust law to raise employee awareness.
• Implemented a Group-wide performance evaluation system for managers, partially linking compensation to sustainability targets.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions (implied by hurricane impact in the US)
• Maintaining safety standards across a global workforce and supply chain.
• Reducing greenhouse gas emissions in line with ambitious targets.
• Ensuring compliance with evolving environmental regulations.
• Managing water scarcity in certain regions.

Mitigation Strategies

• Risk management plans for natural disasters and other events.
• Global safety management system with audits and training programs.
• Technical improvements in plant design and efficient production processes.
• Global environmental management system with audits and certifications.
• Water optimization measures and cooling water system improvements.

Supply Chain Management

Supplier Audits: Over 100 suppliers reviewed for environmental, safety, and sustainability compliance.

Responsible Procurement

• Global Code of Conduct for Suppliers (covering safety, environmental protection, labor rights, human rights, and corporate integrity).

Climate-Related Risks & Opportunities

Physical Risks

• Hurricanes (implied)

Transition Risks

• Regulatory changes in energy and climate policy

Opportunities

• Development of energy-efficient products and technologies; carbon capture and utilization.

Reporting Standards

Frameworks Used: GRI G4 (Comprehensive Option), UN Global Compact

Certifications: ISO 9001, ISO 14001, OHSAS 18001, FSSC 22000 (for CO2 plants supplying food industry)

Third-party Assurance: KPMG AG Wirtschaftsprüfungsgesellschaft

UN Sustainable Development Goals

• SDG 3 (Good Health and Well-being)
• SDG 7 (Affordable and Clean Energy)
• SDG 8 (Decent Work and Economic Growth)
• SDG 9 (Industry, Innovation and Infrastructure)

Linde's contribution to SDGs described in the report.

Sustainable Products & Innovation

• SOLVOCARB® process; LoTOx™ technology; LIV® IQ medical oxygen cylinders; Hospital IQ data platform; hydrogen technologies.

Awards & Recognition

• Awards for occupational health and safety and transport safety (South America, Korea, Europe).

Environmental Metrics

ESG Focus Areas

• Water Security

Environmental Achievements

• Reduced non-brackish water withdrawal by 6% compared to 2018 (pro-forma).
• Reduced total water consumption by 14% from 2018 to 2019.
• South America business achieved a 5% absolute reduction of water consumed in 2019.

Social Achievements

• Enabled an estimated 290 million people to have access to safe drinking water through environmental technologies and gases portfolio.
• Improved water system at a nearby school in Bangalore, India, installing new purifiers and piping, and providing lessons on hand hygiene and water conservation.

Governance Achievements

• Implemented Water Management Plans (WMPs) at 73% of high-water use sites in areas of high water stress by 2019.
• Integrated water-related issues into long-term strategic business plan (5-10 years and 21-30 years).

Climate Goals & Targets

Environmental Challenges

• Water scarcity in some regions where Linde operates.
• Supply chain disruptions due to water issues at supplier locations (although none were recorded in recent years).

Mitigation Strategies

• Developed contingency strategies (e.g., alternative sourcing of raw materials) to mitigate water risks in the supply chain.
• Implemented Water Management Plans (WMPs) at high-water use sites in areas of high water stress.
• Improved water use efficiency through technology investments and employee awareness campaigns.
• Shifting from freshwater to recycled/industrial water sources.

Supply Chain Management

Supplier Audits: 76-100% of suppliers

Responsible Procurement

• Supplier Code of Conduct (SCOC) requiring environmental management systems and reporting on water use.

Climate-Related Risks & Opportunities

Physical Risks

• Water scarcity due to changes in precipitation extremes

Opportunities

• Expansion into new markets for wastewater treatment and desalination applications

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 14064-3

UN Sustainable Development Goals

• SDG 6: Clean Water and Sanitation
• SDG 12: Responsible Consumption and Production
• SDG 13: Climate Action

Linde's water management initiatives contribute to these goals through water conservation, wastewater treatment, and access to safe drinking water.

Sustainable Products & Innovation

• SOLVOCARB system for water desalination

Environmental Metrics

ESG Focus Areas

• Climate Change
• Safety, Health & Environment
• People & Community
• Integrity & Compliance

Environmental Achievements

• Lowered greenhouse gas emissions intensity by 16 percent from 2018, toward a goal of 35 percent reduction by 2028
• Increased procurement of low-carbon and renewable electricity
• More than 100 sites joined the global Zero Waste program, diverting approximately 150 million pounds of waste from landfill
• Reduced water use by 300 million gallons
• Linde gases enabled customers to avoid 85 million metric tons of equivalent CO₂ emissions

Social Achievements

• Expanded Global Giving Program to over $10 million providing additional funding to organizations addressing social justice issues
• Over 300 employee volunteer projects in communities addressing basic human needs
• 27% female employees worldwide

Governance Achievements

• 100 percent of required employees certified that they understood Linde’s Compliance with Laws and Business Integrity and Ethics policies

Climate Goals & Targets

Environmental Challenges

• Catastrophic events or natural disasters
• IT system failures and network disruptions

Mitigation Strategies

• Evaluates direct and indirect business risks, consults with vendors, insurance providers and industry experts, makes investments in suitably resilient design and technology, and conducts regular reviews of the business risks with management
• Implements advanced security technologies, internal controls, network and data center resiliency and recovery process

Supply Chain Management

Supplier Audits: 100% of critical Tier 1 suppliers

Responsible Procurement

• Supplier Code of Conduct
• Code of Business Integrity
• Supplier sustainability and human rights commitments

Climate-Related Risks & Opportunities

Physical Risks

• Catastrophic events or natural disasters

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products
• Clean hydrogen development

Reporting Standards

Frameworks Used: GRI Standards: Core Option, TCFD, SASB

Certifications: ISO 14001, ISO 5001

Third-party Assurance: Bureau Veritas (Limited Assurance on Scopes 1 and 2 and a subset of Scope 3 emissions)

UN Sustainable Development Goals

• SDG 7
• SDG 12
• SDG 13

Linde's activities contribute to these goals through initiatives related to renewable energy, responsible production and consumption, and climate action.

Sustainable Products & Innovation

• DRYREF™ syngas process

Awards & Recognition

• Dow Jones Sustainability World Index for 18 consecutive years
• Bronze Medal in S&P Global’s Sustainability Yearbook 2021
• A- on its 2020 CDP Climate Change Response
• One of the 2021 World's Most Ethical Companies by the Ethisphere Institute

Environmental Metrics

ESG Focus Areas

• Climate Change
• Safety, Health & Environment
• People & Community
• Integrity & Compliance

Environmental Achievements

• Helped customers avoid more than 88 million metric tons of equivalent carbon dioxide.
• Diverted more than 200 million pounds of waste from landfill through its Zero Waste Program.
• Reduced water usage by more than 500 million gallons of water through productivity efforts.

Social Achievements

• Approximately 40 percent of philanthropic contributions were diversity-related in 2021.
• Well on track to exceed its “30 by 30” goal of 30 percent female representation globally by 2030.
• Approximately 250,000 people benefited from nearly 400 global employee community engagement projects.

Governance Achievements

• 19 consecutive years of inclusion in the Dow Jones Sustainability World Index (DJSI World).
• Named to CDP’s A-List for Water Security and remains at the Leadership level for the CDP Climate Change response.
• Reconfirmed as one of the World’s Most Ethical Companies by Ethisphere.

Climate Goals & Targets

Environmental Challenges

• Climate change impacts (natural disasters, supply chain disruptions)
• Cybersecurity threats
• Increased production volumes impacting energy and water consumption

Mitigation Strategies

• Investments in resilient design and technology, regular business risk reviews.
• Implementation of advanced security technologies and internal controls.
• Energy efficiency projects, increased renewable energy sourcing, water management plans.

Supply Chain Management

Supplier Audits: 100% of critical Tier 1 suppliers audited

Responsible Procurement

• Supplier Code of Conduct
• Human rights due diligence process
• Conflict Minerals Supply Policy

Climate-Related Risks & Opportunities

Physical Risks

• Catastrophic events, natural disasters

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products and clean hydrogen technologies

Reporting Standards

Frameworks Used: GRI Standards: Core Option, TCFD, International Integrated Reporting Framework, SASB Standard for the Chemicals Sector

Certifications: ISO 14001, ISO 5001

Third-party Assurance: Carbon Verification Service, LLC (Limited Assurance on Scopes 1 & 2 and a subset of Scope 3)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 8 (Decent Work and Economic Growth)

Linde's initiatives contribute to these goals through renewable energy sourcing, resource efficiency, GHG emission reductions, and workforce development programs.

Sustainable Products & Innovation

• Linde Green product range of liquefied gases with zero-carbon impact
• DRYREF™ syngas process
• Hydrogen technologies

Awards & Recognition

• 19 consecutive years in DJSI World
• CDP A-List for Water Security
• CDP A- for Climate Change
• World’s Most Ethical Companies by Ethisphere

Environmental Metrics

ESG Focus Areas

• Water Security

Environmental Achievements

• Reduced water consumption by more than 1.5 million cubic meters (400 million gallons) in operations through productivity efforts.
• More than 75% of global freshwater withdrawal is returned to its original source, at same or better quality.
• In 2022, more than 91% of Linde’s total water discharges is once-through water which is returned unpolluted and without treatment to its original source.

Social Achievements

• Provision of fully-functioning, safely managed WASH services to all workers

Governance Achievements

• Established a global Responsible Care policy that provides clear directives to all regions / production sites on risk assessment and management throughout the complete product lifecycle.
• Developed water management plans (WMPs) for sites in areas of high water stress

Climate Goals & Targets

Environmental Challenges

• Water scarcity in some regions
• Increased water stress due to climate change

Mitigation Strategies

• Increased use of recycled/brackish water
• Implementation of water management plans (WMPs) at high water use sites in areas of high water stress
• Continuous efforts to improve water use efficiency
• Alternative sourcing strategies for raw materials
• Contingency strategies to mitigate procurement issues including potential water issues

Supply Chain Management

Supplier Audits: risk-based audit schedule

Responsible Procurement

• Sustainability requirements in the Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Droughts
• Flooding
• Hurricanes

Opportunities

• Expansion into new markets for water treatment solutions

Reporting Standards

Frameworks Used: GRI, TCFD, SASB

Certifications: ISO 14064-3

UN Sustainable Development Goals

• SDG 6 (Clean Water and Sanitation)
• SDG 12 (Responsible Production and Consumption)

Linde's water policy integrates its contribution towards SDG 6 and SDG 12 through its product portfolio and water-related actions.

Sustainable Products & Innovation

• SOLVOCARB system for water treatment

Environmental Metrics

ESG Focus Areas

• Climate Change
• Safety, Health & Environment
• People & Community
• Integrity & Compliance

Environmental Achievements

• Helped customers avoid approximately 91 million metric tons of CO2e through Linde applications.
• Sourced more than 1/3 of electricity from low-carbon and renewable resources.
• Saved more than 500 million gallons of water through sustainability initiatives.
• Recycled more than 273 million pounds of waste from landfills through Zero Waste program.
• Planted and/or donated approximately 50,000 trees.

Social Achievements

• Delivered approximately 600 community engagement projects.
• Invested more than 2 million hours in safety training to contractors.
• Launched Advanced Leadership Program (ALP) for high-potential employees.
• Reduced employee turnover to 6.7%.

Governance Achievements

• Established a strong global environmental management system (EMS) aligned with ISO 14001 and ACC’s Responsible Care® Management System (RCMS).
• 100% of management and relevant employees annually certify understanding of the company’s Code of Business Integrity (CBI).

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Climate change impacts
• Water scarcity in certain regions
• Attracting and retaining STEM talent
• Reducing Scope 3 emissions

Mitigation Strategies

• Developed alternative sourcing strategies
• Investing in decarbonization technologies ($3B+ investment)
• Implementing water management plans at high-water-use sites
• Launching HyTOP and ALP programs for talent development
• Collaborating with suppliers and customers to improve Scope 3 data accuracy and reduce emissions

Supply Chain Management

Supplier Audits: 100% of suppliers presenting environmental risk are screened using environmental criteria; periodic audits conducted for critical Tier 1 suppliers.

Responsible Procurement

• Supplier Code of Conduct (SCOC)
• Code of Business Integrity (CBI)
• Due diligence process for new suppliers
• Supplier diversity program

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Growth in clean hydrogen market

Reporting Standards

Frameworks Used: GRI Standards, SASB, TCFD, UNGC

Certifications: ISO 14001, ISO 50001, OHSAS 18001, ISO 9001

Third-party Assurance: Third-party assurance provider (name not explicitly stated in provided text, but mentioned)

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 8 (Decent Work and Economic Growth)
• SDG 13 (Climate Action)

Linde's initiatives contribute to these goals through investments in clean energy, workforce development programs, and GHG emission reductions.

Sustainable Products & Innovation

• Linde Green™ atmospheric gases (oxygen, nitrogen, argon) produced with 100% renewable power.

Awards & Recognition

• DJSI World
• One of the World’s Most Ethical Companies