Climate Change Data

Environmental Metrics

ESG Focus Areas

• Ethics & Compliance
• Innovation & Technology
• Supply Chain Practices
• Human Capital Management
• Workplace Health & Safety
• Energy Consumption & Greenhouse Gas Emissions
• Water
• Waste

Environmental Achievements

• Completed a carbon footprint analysis to quantify greenhouse gas emissions across major facilities
• PTI Technologies received Cal OSHA's Golden Gate Partnership Recognition/Certificate for injury and illness prevention

Social Achievements

• Implemented a wellness program with fitness challenges, classes, and health fairs
• Strengthened connections between recruiting and sustainability efforts, highlighting volunteer and wellness initiatives

Governance Achievements

• Conducted a materiality assessment to identify and prioritize important ESG topics
• Established a Corporate Ethics Committee to monitor and address ethics-related risks
• Developed a CEO succession plan and emergency plan

Climate Goals & Targets

Environmental Challenges

• Efficiently tracking sustainability performance across numerous subsidiaries and global operations

Mitigation Strategies

• Working to enhance and standardize data collection and reporting efforts

Supply Chain Management

Responsible Procurement

• Vendor Code of Conduct
• Conflict Minerals Policy

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol

Sustainable Products & Innovation

• Plastique’s Fibrepak products (reduce customers’ carbon footprints)

Awards & Recognition

• PTI Technologies received Cal OSHA's Golden Gate Partnership Recognition/Certificate

Environmental Metrics

ESG Focus Areas

• Ethics & Compliance
• Innovation & Technology
• Supply Chain Practices
• Human Capital Management
• Workplace Health & Safety
• Energy Consumption & Greenhouse Gas Emissions
• Water
• Waste

Environmental Achievements

• Installed solar panels, switched to LED lighting, added motion sensors and programmable thermostats, installed more energy-efficient HVAC units and manufacturing equipment
• Reduced energy consumption at ETS Lindgren
• Implemented near net shape castings at Mayday, reducing raw materials, waste, and labor
• Westland replaced outdated hydraulic pump system, resulting in significant energy efficiencies
• Doble changed packaging foam to a recyclable version
• NRG's LEED Gold certified facility powered by 100% renewable energy

Social Achievements

• Created the ESCO Sustainability Council
• Developed a corporate-wide sustainability survey
• Implemented a corporate wellness program
• Established the ESCO Technologies Foundation
• Provided employee training programs (ethics, harassment, specialized training for engineers and managers)
• Low employee turnover compared to industry averages

Governance Achievements

• Created Corporate Governance Guidelines
• Established four standing Board committees
• Implemented a new, updated ethics video training for all employees
• Aligned all ethics-related requirements and training for consistency across operating units

Climate Goals & Targets

Environmental Challenges

• Increased energy usage and GHG emissions due to acquisitions of Mayday and Plastique
• Need to improve data quality and coverage for water consumption
• Complexity of eliminating conflict minerals

Mitigation Strategies

• Working to enhance and standardize data collection and reporting efforts to further reduce consumption
• Integrating new businesses into sustainability efforts
• Implementing energy efficiency initiatives at subsidiaries
• Collaborating with suppliers to identify and monitor conflict minerals
• Improving data quality and coverage for water consumption in 2018

Supply Chain Management

Supplier Audits: Periodic assessments to guarantee compliance with ESCO Vendor Code of Conduct

Responsible Procurement

• ESCO Vendor Code of Conduct
• ESCO Conflict Minerals Policy
• Transparency in Supply Chain Disclosure

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol

Certifications: LEED Gold (NRG facility)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• PTI's work on sustainable binder systems and additive manufacturing; VACCO's research on less toxic materials; Crissair's focus on product longevity; Doble's asset risk management system; TEQ's TEQconnex packaging; Plastique's pulp-based packaging

Awards & Recognition

• PTI Technologies' Cal OSHA Golden Gate Partnership Recognition
• VACCO's Cool Planet Award (2014)

Environmental Metrics

ESG Focus Areas

• Governance
• Ethics & Compliance
• Innovation & Technology
• Supply Chain Practices
• Human Capital Management
• Workplace Health & Safety
• Energy Consumption & Greenhouse Gas Emissions
• Water Waste Management

Environmental Achievements

• PTI installed 2636 solar collector panels generating approximately 1,300,000 kWh of clean electricity annually.
• Significant LED lighting replacements across multiple facilities resulting in energy savings and reduced emissions.
• Various process improvements across subsidiaries leading to reduced waste, water usage, and energy consumption (e.g., ETS reducing scrap by 35%, Plastique reducing water usage and waste, TEQ reducing energy usage by 28%).
• Implementation of recycling programs across multiple sites for various materials (e.g., metal, cardboard, polystyrene).

Social Achievements

• NRG received four awards in 2018, including designation as one of the 2018 Best Places to Work in Vermont.
• ETS-Lindgren and Mayday/Hi-Tech developed and received recognition for their strong mentor programs.
• Hi-Tech employees independently provided hurricane relief supplies.

Governance Achievements

• Production and distribution of a new ethics video in seven languages for all employees.
• Continued alignment of ethics-related requirements and training for consistency across operating units.

Climate Goals & Targets

Environmental Challenges

• Data collection for sustainability reporting across 31 sites with 54 utility providers and 94 accounts was complex and time-consuming.

Mitigation Strategies

• Licensed a software platform to automate utility data collection, providing benchmarking and data analytics tools.

Supply Chain Management

Responsible Procurement

• ESCO’s Transparency in Supply Chain Disclosure
• ESCO Vendor Code of Conduct
• Supplier surveys, onsite visits and audits
• ESCO Conflict Minerals Policy

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Eco-friendly absorber products (ETS)
• Filter media with environmentally friendly epoxy binders (PTI)
• Green water propellant (VACCO)
• Bat Deterrent System (NRG)

Awards & Recognition

• Four awards for NRG in 2018, including Best Places to Work in Vermont

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced energy usage intensity by 11.81% (from 88.5MM kWh to 78.04MM kWh)
• Reduced water usage intensity by 7.62% (from 44.16MM US gal to 40.79MM US gal)
• Reduced Scope 1 emissions by 6.42% (from 6.26k MTCO2e to 5.86k MTCO2e)
• Reduced Scope 2 emissions by 24.51% (from 24.97k MTCO2e to 8.85k MTCO2e)
• NRG Systems implemented energy monitoring system and plastic reduction program
• PTI Technologies implemented LED lighting project with anticipated annual energy reduction of 306,660 kWh
• Doble Engineering opened new headquarters with 0.6 MW rooftop solar PV installation and energy-efficient LED lighting

Social Achievements

• Doble Engineering opened new headquarters with employee amenities (fitness center, cafeteria)
• NRG Systems participated in plastic reduction program, diverting significant amounts of plastic from landfill

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Ongoing changes to portfolio of owned and leased sites present challenges in accurately making year-to-year comparisons
• Difficulties in obtaining data from certain foreign sites of the Technical Packaging business segment following its disposition

Mitigation Strategies

• Streamlined and automated data collection process using an automated software platform
• Improved data collection processes

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: LEED Gold (NRG Systems building)

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

• Governance
• Workplace Health & Safety
• Cyber Security
• Human Capital
• Employee Wellness
• Employee Engagement
• Environmental Footprint
• Waste Management and Recycling

Environmental Achievements

• Improved data collection for environmental footprint, including smaller facilities.
• 13% reduction in packaging material costs at Mayday Manufacturing due to automated packaging system.
• Helium reclamation system at VACCO reuses up to 90% of helium.

Social Achievements

• Added two female directors to the Board in 2019 and 2022, increasing Board diversity.
• Enhanced ESG oversight by the Board, including formation of an ESG Committee.
• Various employee wellness programs implemented across subsidiaries (e.g., health fairs, biometric screenings, fitness challenges).
• Employee volunteer activities supporting various local charities.
• $410,698 in grants from the ESCO Technologies Foundation in 2021, including $165,000 in COVID-19 relief funds.

Governance Achievements

• Enhanced Nominating and Corporate Governance Committee charter to include specific ESG responsibilities.
• Formed an ESG Committee in 2022 to provide strategic focus for corporate-wide ESG efforts.
• Increased disclosure on human capital management and data security in public company filings.

Climate Goals & Targets

Environmental Challenges

• Global pandemic posed unprecedented challenges for businesses, customers, workforce, and communities.
• Ongoing changes to owned and leased sites present challenges in accurately comparing year-to-year environmental data.
• Increasing frequency and sophistication of global information technology security threats.

Mitigation Strategies

• Adjusted operations for COVID-19 safety protocols (enhanced training, communication, PPE, etc.).
• Improved data collection methods for environmental footprint to account for facility changes.
• Enhanced cyber security program including employee training, information security policies, third-party monitoring, and protective systems.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulation of greenhouse gas emissions

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

• Bio-based polyurethane products at Globe Composite Solutions
• Improved packaging system at Mayday Manufacturing

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Employee Safety
• Community Engagement
• Supply Chain Ethics

Environmental Achievements

• Reduced carbon intensity by 9.4% while revenue grew by 19.9%
• Participated in the St. Louis Green Business Challenge
• Adopted an enterprise-wide environmental policy
• Improved process of collecting and analyzing environmental footprint
• Supported innovative technologies that make wind and solar projects possible (through NRG Systems)

Social Achievements

• Implemented enhancements to regulatory and safety compliance program
• Created a regulatory registry for all operating facilities
• Provided $354,000 in grants through the ESCO Technologies Foundation
• Supported various community initiatives through employee volunteerism (e.g., Operation Clean Stream, Vermont Foodbank, Toys for Tots)

Governance Achievements

• Formed an ESG Committee in 2022
• Updated Vendor Code of Conduct
• Implemented a cybersecurity program combining CMMC and NIST CSF standards
• Mandated annual employee ethics training

Climate Goals & Targets

Environmental Challenges

• Ongoing changes to owned and leased sites make year-to-year comparisons difficult
• Acquisitions add to environmental footprint
• Increasing frequency and sophistication of cyber security threats

Mitigation Strategies

• Implemented a regulatory registry for EHS compliance
• Enhanced cybersecurity technologies and internal controls
• Developed and implemented a cybersecurity program

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Updated Vendor Code of Conduct requiring ethical conduct and compliance with human rights policies

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulation of greenhouse gas emissions

Opportunities

• Growth in renewable energy sector (through NRG Systems)

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• NRG Systems' wind and solar resource measurement and intelligence tools

Awards & Recognition

• St. Louis Green Business Challenge award

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced carbon intensity from 20.0 to 17.79 MtCO2e per million dollars of revenue from 2021 to 2023.
• Energy efficiency audits at three facilities projected to reduce carbon emissions by approximately 157.8 tons annually.

Social Achievements

• Continued improvements to health and safety program, resulting in a decrease in Total Recordable Injury Rate from 0.80 in 2021 to 0.60 in 2023.
• ESCO Technologies Foundation awarded $278,000 in Core Charity grants and 14 scholarships worth $44,000 in 2023.

Governance Achievements

• Separated the roles of Board Chair and Chief Executive Officer to increase Board independence.
• Increased Board diversity with two female directors and two directors representing racial minorities.

Climate Goals & Targets

Environmental Challenges

• Increased total Scope 1 and Scope 2 emissions due to business acquisitions and increased business operations.
• Ongoing changes to owned and leased sites present challenges in accurately making year-to-year comparisons of environmental data.

Mitigation Strategies

• Implementing an environmental management system to assist local personnel in complying with environmental regulations.
• Conducting energy efficiency audits and implementing identified upgrades.

Supply Chain Management

Responsible Procurement

• Vendor Code of Conduct requiring compliance with ESCO’s Environmental Policy and all applicable environmental laws and regulations.

Climate-Related Risks & Opportunities