Climate Change Data

Environmental Metrics

ESG Focus Areas

• Decarbonization
• Alternative Fuels
• Electrification
• Hybridization
• Hydrogen
• Sustainability

Environmental Achievements

• Allowed HVO (Hydrotreated Vegetable Oil) use on its entire range of diesel engines in Europe and the USA, leading to up to 90% reduction in overall CO2 emissions depending on raw materials.
• Developing a diesel-derived hydrogen internal combustion engine (KDI 2504) aiming for carbon-neutral operation and near-zero emissions.

Social Achievements

• Acquisition of Curtis, a leader in electric vehicle and hybrid applications, expanding product portfolio and expertise in electrification.
• KSD engine won Engine of the Year awards, showcasing technological advancements and cost-effectiveness.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Transitioning the off-road industry away from ICE technology while meeting diverse customer needs and regulatory requirements.
• Balancing the need for decarbonization with the continued use of internal combustion engines.

Mitigation Strategies

• Investing in alternative fuels (HVO, hydrogen), electrification, hybridization, and improved ICE efficiency.
• Developing modular solutions (hybrid, mild hybrid, full electric) to meet diverse OEM needs.
• Joining the eFuel Alliance to promote the use of alternative fuels.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products and alternative fuel solutions

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• KSD engine, K-HEM hybrid unit, hydrogen ICE engine

Awards & Recognition

• Engine of the Year (Diesel and Diesel Progress Summit)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Stewardship
• Waste Management
• Diversity, Equity, and Inclusion
• Community Engagement
• Ethical Conduct
• Human Rights
• Supplier Sustainability

Environmental Achievements

• Reduced global operational net greenhouse gas intensity (Scope 1 + 2) by 6% compared to 2022 and by 64% since 2008.
• Reduced global energy use intensity by 11% compared to 2022 and by 47% since 2008.
• Achieved 50% global operational electricity from renewable resources.
• Reduced water withdrawal intensity by 20% compared to 2022 and by 65% since 2008.
• Reduced global operational net waste intensity by 19% compared to 2022 and by 66% since 2008.
• Diverted 58% of waste from disposal.
• Added 120 WaterSense®-labeled products to portfolio.
• Reduced carbon emissions through Supplier Sustainability Program by 20,996 metric tons of CO2e.

Social Achievements

• Achieved a 100 score on the Human Rights Campaign’s Corporate Equality Index.
• Exceeded diversity hiring goal in the U.S. with 54% diverse hires.
• Launched Kohler Scholars Program providing scholarships, internships, and mentorship.
• Improved EcoVadis assessment score.
• Impacted 836,450 lives through community engagement activities.

Governance Achievements

• Established an internal price of carbon of $100 per metric ton of Scope 1 and 2 greenhouse gas emissions.
• Implemented net-zero building design standards.
• Challenged Executive Management Team to add sustainability outcomes to performance goals (73% participation).

Climate Goals & Targets

Environmental Challenges

• Addressing the global water crisis.
• Reducing Scope 3 emissions.
• Continuously improving data collection and analysis.

Mitigation Strategies

• Completed a global water risk assessment and developed conservation and reuse protocols.
• Completed Kohler’s first two watershed restoration projects.
• Established frameworks to integrate Scope 3 accounting into business processes.
• Improved data collection and analysis to align with industry best practices.

Supply Chain Management

Supplier Audits: 578 suppliers audited

Responsible Procurement

• Supplier Code of Conduct
• Supplier Sustainability Program
• Screening for human rights and forced labor risk

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products
• Growth in alternative energy products

Reporting Standards

Frameworks Used: GRI Standards

Third-party Assurance: Limited assurance provided by independent accountants

UN Sustainable Development Goals

• Goal 6: Clean Water and Sanitation
• Goal 7: Affordable and Clean Energy
• Goal 12: Responsible Consumption and Production

Kohler's initiatives contribute to these goals through sustainable product development, responsible resource management, and community engagement.

Sustainable Products & Innovation

• WaterSense-labeled products
• KOHLER WasteLAB tiles
• KOHLER Loope waterless toilet
• KOHLER Unify hybrid power system
• KOHLER Cleanse handwashing faucet

Awards & Recognition

• WaterSense Sustained Excellence Award
• Reuters Responsible Business Award
• Fast Company Innovation by Design Award
• Human Rights Campaign’s Corporate Equality Index (100 score)
• Mercer China Healthiest Workplace Outstanding Health Practice Award
• WELCOA Platinum Well Workplace Award