Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental, Health, and Safety (EHS)
• Workforce Health and Safety
• Employee Engagement
• Diversity and Inclusion
• Supply Chain
• Community Commitment
• Product Innovation
• Corporate Governance
• Ethics and Compliance

Environmental Achievements

• Increased recycling rate by 30 percent since 2018
• Introduced a combined EHS System that corresponds with OHSAS and ISO frameworks
• Expanded data collection reach, resulting in increased accuracy of reporting
• One facility reduced its waste generation by 30% by decommissioning antiquated machinery
• Several facilities became “plastic water bottle free”

Social Achievements

• 100% of Employees Receive Code of Conduct E-training
• Offered more than 50 different Health and Safety training sessions to employees
• Reduced Total Recordable Incident Rate from 2.38 in 2016 to 1.72 in 2019
• Various employee engagement activities (Community Involvement, Career Development, Culture Day, Family Involvement)
• Competitive benefits package including Rally by Optum, Tobacco Cessation Program, Guidance Resources®, and Health Advocate Services

Governance Achievements

• Adopted a new Code of Ethics and Business Conduct in August 2018
• Implemented a dynamic Compliance and Ethics Program (CEP)
• Provided targeted anti-corruption module to all eligible employees in 2018
• Annual internal fraud risk assessment conducted

Climate Goals & Targets

Environmental Challenges

• Variances in energy and GHG emissions correlated with changes in production and revenue
• Managing waste streams
• Maintaining a safe work environment

Mitigation Strategies

• Investing in reduction efforts (e.g., air leak tool, new compressors)
• Initiatives to reduce waste (e.g., recycling programs, wood waste shredding, plastic waste repurposing)
• Emphasis programs to identify and control work-related hazards associated with manual handling
• Company-wide safety culture focused on management visibility, employee engagement, and hazard reduction

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Contractual terms and conditions requiring compliance with all applicable laws

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core, UNGC

Certifications: OHSAS 18001, ISO 14001, ISO 45001, ISO 9001

Sustainable Products & Innovation

• Radiodetection’s MAP&SHARE™ Android app
• Genfare Link™ digital fare management platform
• Sabik Marine SLU-24/SLU-36 Sabik Lighthouse Unit
• CUES, Inc. SPiDER Scanner

Awards & Recognition

• 2019 Thomas J. Reynolds Award for Excellence in Construction Safety and Health (MCT Services, LLC)
• 2018 Houston Business Roundtable Silver Safety Excellence Award (SPX Cooling Technologies)
• Outstanding Safety Performance award from ExxonMobil (SPX Cooling Technologies)
• 2019 Waukesha Education Foundation Corporate Partner Award (SPX Transformer Solutions)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Worcester facility reduced electricity usage by replacing lights with LEDs.
• Eden, North Carolina facility reduced propane usage by 86% through forklift replacement.
• Bristol, England facility became a zero-waste facility.

Social Achievements

• Recordable injury rate decreased approximately 3 percent from 2019, and more than 12 percent from 2018.
• Offered COVID-19 related support, including leave policy and paid time off for vaccinations.
• More than 2,000 hours of training were delivered to over 500 leaders in support of diversity and inclusion programs.

Governance Achievements

• Formal designation of ESG oversight responsibilities to the Nominating and Governance Committee.
• Implemented a compliance technology platform to support anti-corruption and international trade compliance.
• All eligible employees completed an anti-corruption training module.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacted operations and required adaptation of practices.
• Initial slowdown in EH&S management system implementation due to the pandemic.

Mitigation Strategies

• Implementation of a COVID-19 Task Force.
• Adoption of practices to prevent the spread of COVID-19 (social distancing, remote work, etc.).
• Modification/enhancement of employee benefits.
• Continued EH&S management system alignment through virtual evaluations and group discussions.

Supply Chain Management

Responsible Procurement

• Conflict Minerals and Supply Chain transparency policies
• Supplier Code of Conduct
• Mandatory training on forced labor, slavery, and human trafficking for employees with direct responsibility for supply chain management.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core Requirements, SASB

Certifications: ISO (Genfare and Sabik operations)

Sustainable Products & Innovation

• Energy-efficient boilers
• Energy-efficient cooling towers (Everest cooling towers)
• Fluid cooler and evaporator for commercial and industrial refrigeration
• Cable Avoidance Tools (C.A.T.®)
• Cable Test (TDR) products
• Water, wastewater, and storm water inspection equipment (CUES)
• Robotic systems for gas distribution network rehabilitation (ULC Technologies)
• Obstruction lighting solutions (Flash Technology)
• Solar-powered products (Sabik Marine)
• Genfare Link software for fare collection

Environmental Metrics

ESG Focus Areas

• Product Quality & Safety
• Employee Health & Safety
• Employee Engagement
• Diversity & Inclusion
• Labor Practices
• Carbon Emissions
• Energy Management
• Water and Wastewater Management
• Business Model Resilience
• Management of the Legal and Regulatory Environment
• Supply Chain Management

Environmental Achievements

• 1,678 metric tons CO2e decrease in 2021 scope 1 and 2 market-based GHG emissions compared to 2020
• 19% reduction in operational emissions from 2018 baseline
• Energy use decreased by 8,042 MWh compared to 2020
• 625 tons per year of polyvinyl chloride (PVC) scrap turned into decking materials
• 950 tons per year of wood waste diverted from landfill

Social Achievements

• Launched a hazard identification program globally within operations
• Improved employee engagement through hazard reporting and corrective actions
• Added several new wellbeing programs, including cancer and autoimmune support
• Launched the SPX Leadership Model to provide clarity on leadership expectations
• 89% participation in annual global employee survey

Governance Achievements

• Renamed Nomination and Governance Committee to Governance & Sustainability Committee
• Tied ESG oversight responsibilities to the Board of Directors
• Implemented a risk matrix to better evaluate supply chain risks
• Conducted an extensive survey of supply chain focusing on human trafficking regulations
• Expanded evaluation of suppliers regarding conflict minerals and U.S. EPA banned substances

Climate Goals & Targets

Environmental Challenges

• Slight uptick in recordable injuries in 2021 (attributed to enhanced monitoring)
• Supply chain risks related to human trafficking, conflict minerals, and banned substances

Mitigation Strategies

• Enhanced monitoring and scrutiny around safety incidents
• Implemented a risk matrix for supply chain risk evaluation
• Conducted supply chain surveys on human trafficking, conflict minerals, and banned substances
• Launched a new initiative to enhance supply chain procurement performance using a uniform internal scorecard

Supply Chain Management

Responsible Procurement

• Code of Ethics and Business Conduct
• Policies on conflict minerals and modern slavery
• Risk matrix for supply chain risk evaluation
• Surveys on human trafficking, conflict minerals, and banned substances

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001 (Genfare and Sabik operations)

Sustainable Products & Innovation

• SPX MD Everest cooling tower
• NURO Touch-Screen Control System
• OL800 Solar LED Obstruction Light
• LED lighting solutions

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Supply Chain Management
• Product Safety
• Employee Health and Safety
• Employee Engagement
• Energy Management
• Water and Wastewater Management

Environmental Achievements

• Reduced GHG emissions per revenue by 22% from 2019 baseline (to 23.33 mtCO2e)
• Reduced water consumption by 43% in 2022 compared to 2021
• Reduced total waste disposal by 17% between 2022 and 2021
• Introduced WaterGard, a water usage optimizer and filtration system

Social Achievements

• Launched Amplified Leadership, a three-day mid-level manager training development program
• Improved wellness programming (Virta Health, personal health coaching, etc.)
• Enhanced Paid Time Off (PTO) benefits for U.S. employees
• Increased employee engagement favorability by 2% year over year

Governance Achievements

• Established an ESG Steering Committee
• Published ESG commitments in January 2023
• Enhanced supplier diligence questionnaires
• Implemented Find and Fix hazard identification and reporting program

Climate Goals & Targets

Environmental Challenges

• Increased TRIR due to increased use of temporary and less experienced employees and raw material shortages
• Data anomalies in preceding years resulted in an understatement of 2021 GHG emissions
• Supply chain disruptions and labor availability constraints impacting production levels

Mitigation Strategies

• Closely monitoring TRIR and aiming for year-over-year improvement
• Corrected GHG emissions data for 2021
• Implementing energy audits at primary manufacturing plants
• Enhanced hazard reporting linked to employee recognition programs

Supply Chain Management

Responsible Procurement

• Supplier diligence questionnaires; commitment to eradicating human trafficking and slavery

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, SASB

Third-party Assurance: Independent third-party qualitative review

Sustainable Products & Innovation

• WaterGard
• CUES GraniteNet AI Feature
• ULC Drawdown Compressor
• Expanded electrical heating

Environmental Metrics

ESG Focus Areas

• Carbon Emissions
• Energy Management
• Water and Wastewater Management
• Product Quality & Safety
• Employee Health & Safety
• Employee Engagement
• Diversity & Inclusion
• Labor Practices
• Business Model Resilience
• Management of the Legal and Regulatory Environment
• Supply Chain Management

Environmental Achievements

• Reduced greenhouse gas intensity by 34% from 2019 levels, exceeding the 30% target by 2030.
• Performed energy audits on facilities representing more than two-thirds of Scope 1 & 2 greenhouse gas emissions.
• Developed and launched innovative solutions to help customers become more efficient, safer, and less energy-intensive.
• Introduced a supplier code of conduct.

Social Achievements

• Improved safety performance with a TRIR decline of more than 20% in 2023.
• Year-over-year improvement in enterprise-level favorability scores for both engagement and D&I.

Governance Achievements

• Enhanced governance structure through board declassification (approved in 2024, effective 2026).
• Published a Supplier Code of Conduct.

Climate Goals & Targets

Environmental Challenges

• Rise in TRIR in 2022 due to increased hiring during tight labor conditions.
• Potential disruptions to operations and increased costs due to extreme weather and climate change.
• Increased energy or compliance costs due to de-carbonization regulations.

Mitigation Strategies

• Reassessed onboarding and training practices to enhance safety.
• Implementing mitigation strategies to address climate-related risks (detailed in the report but not explicitly listed as actions).
• Developing and launching climate-conscious products to meet growing customer demand for efficient and sustainable solutions.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Transition Risks

• Regulatory changes
• Market shifts towards decarbonization

Opportunities

• Development of energy-efficient products
• Growth in renewable energy and critical infrastructure sectors

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Third-party Assurance: An independent third party qualitatively reviews and assesses the accuracy of our sustainability documentation and tracking efforts.

Sustainable Products & Innovation

• Climate Conscious Products initiative
• Boiler-heat pump combination products
• B-20 biofuel certified boilers
• Marley® WaterGard™ water usage optimizer
• Olympus V adiabatic cooling series

Awards & Recognition

• America’s Most Responsible Companies by Newsweek and Statista (2024)