Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Performance
• Human Capital Management & Diversity Programs
• Corporate Governance Programs

Environmental Achievements

• 15% decrease in CO2 emissions & 13% reduction in total energy usage over a 3-year period (2018–2020)
• Implemented an advanced solvent recovery and recycling system that captures solvent for re-use and recycling off-site for the production of new commercial products
• Installed a heat exchange system at the Appleton, Wisconsin Performance Center that captures excess heat from air compressor equipment and repurposes it for heating buildings during the winter months
• Initiated efforts at the Monrovia, California Performance Center to upgrade natural gas burners to more energy-efficient models
• Upgrading facility lighting at the majority of Ducommun’s Performance Centers to high-efficiency LED lighting systems
• Installed solar panels on the roof of our Certified Thermoplastics Performance Center in Santa Clarita, California

Social Achievements

• Decreased lost time incident rate by over 52% and reduced total recordable incident rate by over 35% between 2018 and 2020
• As of 12/31/2020, 33% of our leaders were women & 23% were minorities (up from 31% and 22%, respectively, in 2019)
• YoY increases of 22% & 20% in promotions of women & minorities into leadership roles
• Awarded 25 scholarships to children and grandchildren of employees (up from 22 in 2019)
• Aided COVID-19 mitigation efforts by shipping ~1,300 Tyvek safety units & ~90 lab coats to NYC area hospitals to protect front-line health care workers
• Provided more than $1.3 million in 2020 to national and local charities to support COVID-19 relief efforts, social justice causes and support underrepresented communities through The Ducommun Foundation

Governance Achievements

• Ducommun’s ESG initiatives are overseen by its Board of Directors and specifically, its Corporate Governance and Nominating Committee
• In 2020, and based on management’s recommendations, the Governance Committee approved the development of an ESG program substantially based on the Sustainability Accounting Standards Board’s Aerospace and Defense Industry Standard

Climate Goals & Targets

Environmental Challenges

• Reducing CO2 emissions further
• Reducing the number of reportable spills
• Improving energy efficiency
• Reducing water consumption

Mitigation Strategies

• Continuous improvement on environmental metrics
• Implementing advanced solvent recovery and recycling systems
• Installing heat exchange systems, upgrading natural gas burners, upgrading facility lighting to LEDs, and installing solar panels
• Installing industrial water treatment and recycling systems and industrial parts washing systems

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Prohibition Against Trafficking in Persons Policy and California Transparency in Supply Chains Act disclosure statement

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Investment in renewable energy products (lightning strike protection for wind turbines)

Reporting Standards

Frameworks Used: SASB Standard

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Lightning Diversion Systems for wind turbines

Awards & Recognition

• 2018 Silver pretreatment award from the Joplin Public Works department
• 2019 Good Corporate Citizen certificate by the Los Angeles County Sanitation Department
• Orange County Business Journal’s 2020 List of Fastest-Growing Public Companies

Environmental Metrics

ESG Focus Areas

• Environmental Performance
• Human Capital Management & Diversity Programs
• Corporate Governance Programs

Environmental Achievements

• 28% decrease in combined Scope 1 and 2 greenhouse gas emissions (2018-2021)
• 17% reduction in total energy usage (2018-2021)
• No reportable spills in 2021
• Eliminated more than 1.5 million pounds of hazardous and non-hazardous waste disposal in 2021 through evaporative wastewater tanks
• Reduced water consumption by over 7.1 million gallons annually at Huntsville, Arkansas performance center

Social Achievements

• Decreased lost time incident rate by 56% and total recordable incident rate by 68% between 2018 and 2021
• Added two female directors to the Board, increasing female representation to 37.5%
• Increased diversity in leadership: 27% women and 29% from diverse backgrounds at the Director level (up from 19% and 24% respectively in 2020)
• Selected by Newsweek and Best Practice Institute as Top 100 Most Loved Workplace for 2021
• Awarded 48 Ducommun Scholarships in 2021 (up from 25 in 2020), totaling $138,000 (up from $71,000 in 2020)

Governance Achievements

• Established a Director-level position to lead ESG efforts and convened an ESG Steering Committee
• Board now consists of eight members, three of whom are women and one from an underrepresented background

Climate Goals & Targets

Environmental Challenges

• Competitive labor market
• Need to improve the scope and transparency of environmental programs and ESG reporting

Mitigation Strategies

• Partnerships with outreach organizations to increase diversity in hiring
• Implementing a utility management software platform to improve data collection and transparency
• Developing an internal roadmap to meet ISO 14001 certification requirements

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Prohibition Against Trafficking in Persons Policy
• California Transparency in Supply Chains Act disclosure statement

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: SASB Standard

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Lightning Diversion Systems for wind turbines

Awards & Recognition

• Newsweek’s Most Loved Workplaces 2021
• 2021 Best Places to Work in Orange County

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced combined Scope 1 and 2 greenhouse gas emissions by 28% compared to 2019, normalized to revenue.
• Reduced total energy usage by 13% compared to 2019 baseline levels, normalized to revenue.
• Recycled or reclaimed 489,000 pounds (6%) of 8.6 million pounds of hazardous waste offsite; reclaimed and reused 7 million pounds (82%) onsite.
• Reduced water demand by 17.9 million gallons of fresh water due to conservation initiatives.

Social Achievements

• Lost Time Incident Rate decreased by 78% since 2019 and by 74% compared to 2021.
• Total Recordable Incident Rate improved by 71% since 2019 and by approximately 7% compared to 2021.
• Ducommun Foundation donated more than $1.7 million since 2019 to support social justice causes and underrepresented communities.
• Awarded 70 scholarships in 2022 to children and grandchildren of employees, a 31% increase over 2021.

Governance Achievements

• Established a corporate-level director position to lead Ducommun’s ESG efforts and convened an ESG Steering Committee in 2021.
• No environmental regulatory Notices of Violations in 2022.
• Three performance centers received awards for exemplary environmental compliance.

Climate Goals & Targets

Environmental Challenges

• Climate-related risks such as natural disasters (tornadoes, earthquakes, floods), regulatory requirements impacting energy pricing and emission restrictions, and market risks related to customer expectations for value chain emissions reduction.
• Challenges in the labor market impacting hiring and recruiting.

Mitigation Strategies

• Updated Business Continuity Plans at each performance center to manage physical climate change-related risks.
• Implemented energy efficiency projects to reduce GHG emissions.
• Continued implementation of energy efficiency projects to reduce GHG emissions.
• Long-term strategic planning and roadmap development to address market risks.
• Active outreach program to ensure individuals from underrepresented groups have access to job opportunities.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Prohibition Against Trafficking in Persons Policy
• Compliance with California Transparency in Supply Chains Act

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters (tornadoes, earthquakes, floods)

Transition Risks

• Regulatory changes impacting energy pricing and emission restrictions
• Market risks related to customer expectations for value chain emissions reduction

Opportunities

• Investment in low-carbon and sustainable opportunities (e.g., partnership with Wichita State University for wind turbine technology).

Reporting Standards

Frameworks Used: SASB, TCFD, CDP, GHG Protocol

Certifications: ISO 14001 (pilot program at Coxsackie, NY performance center)

Third-party Assurance: Not disclosed

Sustainable Products & Innovation

• VersaCore Composite™ parts (lightweight composite material)
• Lightweight plastic components replacing aluminum parts
• Hollow fan blades (chemically milled to reduce weight)
• Wiring harnesses for natural gas turbines (assist with detecting temperature variations)

Awards & Recognition

• 2022 Environmental Stewardship Award (Parsons, Kansas performance center)
• Certificate of recognition from the Los Angeles County Sanitation Districts (Monrovia, California performance center)
• Orange County Business Journal’s “Best Places to Work” (two consecutive years)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced combined Scope 1 and 2 GHG emissions by 37% compared to 2019 baseline, normalized to revenue; 16% compared to 2019 baseline, normalized to employee count
• Reduced total energy usage by 16% compared to 2019 baseline on an absolute basis
• Reclaimed, recycled, and reused 99% of hazardous waste generated in 2023
• Recycled, reused, and reclaimed 82% of chemicals used in 2023
• Coxsackie, NY performance center earned ISO 14001 certification

Social Achievements

• Zero lost time incidents in 2023
• Total recordable incident rate improved by 75% since 2019 and by 12% compared to 2022
• Over 40% of the Board is composed of women and a member from an underrepresented background
• Awarded 83 scholarships totaling $237,000 in 2023
• Ducommun Foundation donated approximately $1.8 million since 2019

Governance Achievements

• No environmental regulatory NOVs identified during 2023 inspections
• Updated Business Continuity Plans (BCPs) for each performance center to mitigate climate-related risks
• Implemented Novisto CER software to unite CER metrics across the enterprise

Climate Goals & Targets

Environmental Challenges

• Climate-related risks such as severe weather, extreme drought, sea level rise, pandemics, and changes in weather patterns
• Regulatory risks associated with new climate-related requirements
• Market risks associated with customer expectations for value chain emissions reduction and competition

Mitigation Strategies

• Updated BCPs for each performance center to prepare for short-term and long-term climate-related risks
• Continued implementation of energy efficiency projects to reduce GHG emissions
• Long-term strategic planning and roadmap development to address market risks

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Prohibition Against Trafficking in Persons Policy
• California Transparency in Supply Chains Act disclosure statement

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather, floods, tornadoes, hurricanes, extreme drought, sea level rise, pandemics

Transition Risks

• Regulatory changes impacting energy pricing, emission restrictions, and compliance costs
• Market shifts related to customer expectations and competition

Opportunities

• Development of energy-efficient products and renewable energy sources

Reporting Standards

Frameworks Used: SASB, TCFD, GRI

Certifications: ISO 14001 (Coxsackie, NY performance center)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• LDS lightning strike protection technology for wind turbines
• VersaCore Composite™ components
• Lightweight plastic components
• Hollow fan blades
• Chemically milled aircraft aluminum skins
• BLR winglets, FastFins™, Vortex Generators, and Whisper Prop™

Awards & Recognition

• Newsweek’s Most Responsible Companies for 2024
• Appleton performance center’s gold-level Employee Friendly Workplace certification
• Appleton performance center’s Exemplary Employer Award