Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Indianapolis manufacturing operations have been Zero Waste to Landfill (ZWTL) for production waste since 2009.
• Reduced CO2 emissions by over 3.8 million metric tons through H 40/50 EP electric hybrid propulsion system.
• 10 percent of power consumed at Global Headquarters facility is generated from renewable energy sources.

Social Achievements

• Implemented several initiatives focused on fostering a workplace culture of inclusion, including unconscious bias training.
• Donated over $400,000 to the United Way of Central Indiana’s Annual Campaign.
• Expanded U.S. Parental Leave Policy to provide four weeks of paid parental leave at 100% of base pay, in addition to eight weeks of paid leave for birth mothers (starting 2022).

Governance Achievements

• Established an internal cross-functional ESG working group to oversee Allison’s policies, initiatives and reporting relative to ESG.
• All employees receive ongoing annual training on Allison Code of Business Conduct.
• Has a whistleblower hotline for employees and other stakeholders.

Climate Goals & Targets

Environmental Challenges

• Global pandemic impacting lives, innovation, and the global supply chain.
• Higher rate of employee turnover in 2021 due to the “Great Resignation”.

Mitigation Strategies

• Worked closely with supply base to minimize disruptions.
• Maintained commitment to customers and suppliers to ensure timely product delivery.
• Implemented stringent protocols and safety measures to limit the spread of COVID-19.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct (addresses human rights, labor rights, health and safety, anti-corruption, ethical behavior, and environmental performance).

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: SASB (Sustainability Accounting Standards Board) for Industrial Machinery and Goods sector, UN Global Compact, Universal Declaration of Human Rights (UDHR)

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• eGen Power™ electric axles
• eGen Flex™ electric hybrid solution
• 9-speed transmission

Awards & Recognition

• Legacy Award from the American Lung Association in Indiana
• National Excellence in Training Award (ASE Training Managers Council)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Indianapolis manufacturing operations have been Zero Waste to Landfill (ZWTL) for production waste since 2009. 96% of production waste was recycled in 2022.
• Decreased well water consumption by 23% year over year in Indianapolis.
• Replacing diesel engine test stands with electric test stands in Indianapolis.
• Upgrading on-site pre-treatment of wastewater in Indianapolis to improve effluent water quality.
• LED lighting footprint increased from 25% to 40% in India.
• Enhanced renewable energy sourcing from 68% to more than 76% in India.

Social Achievements

• Implemented several initiatives focused on fostering a workplace culture of inclusion, including unconscious-bias training for approximately 1,000 employees.
• Hosted events in honor of Black History Month, International Women’s Day, International Women in Engineering Day, Asian American and Pacific Islander Heritage Month, Hispanic Heritage Month, and Disabilities Awareness Month.
• Donated $268,000 to community organizations that serve women and racially/ethnically diverse populations.
• Awarded $25,000 in scholarships to five students.
• Allison Transmission India earned an Eat Right Campus certification.

Governance Achievements

• Established an internal cross-functional working group to oversee the company's reporting relative to ESG.
• All employees receive ongoing annual training on the Allison Code of Business Conduct.
• Has a whistleblower hotline for anonymous reporting of concerns.

Climate Goals & Targets

Environmental Challenges

• Global markets experienced input constraints due to lingering impacts from the pandemic, global economic uncertainty, and the Russia-Ukraine war.
• Supply chain disruptions.

Mitigation Strategies

• Worked tirelessly with suppliers and customers to minimize the impact of constraints on commitments.
• Instituted a four-step global Supplier Risk Assessment Process to identify, quantify, mitigate, and monitor supply chain risks.
• Implemented concrete countermeasures such as pursuing first claims on supply and buffering inventory.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct (addresses human rights, labor rights, health and safety, anti-corruption, ethical behavior, and environmental performance).

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: SASB (Industrial Machinery and Goods sector), UN Global Compact, Universal Declaration of Human Rights

Certifications: ISO 14001 (five sites)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• eGen Power® family of fully electric axles
• eGen Flex™ electric hybrid system
• eGen Force™ electric hybrid system for tracked defense vehicles

Awards & Recognition

• Pro Patria Award from the Indiana committee for Employer Support to the Guard and Reserve (ESGR)
• 2022 National Excellence in Training “Grand Award” (ASE Training Manager Council)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• 94% of production waste recycled at global HQ
• Five manufacturing sites certified in ISO 14001 Environmental Management Systems
• Indianapolis manufacturing operations have been Zero Waste to Landfill (ZWTL) for production waste since 2009
• 4% decrease in compressed air intensity at Indianapolis facility due to new drying technology and leak detection

Social Achievements

• Over 500 Allison employees volunteered over 5,000 hours to give back to community organizations
• Launched Cares, a new Corporate Social Responsibility program
• Multicultural ERG saw a 51% increase in membership in 2023
• Emerging Professional ERG’s membership increased by 48%
• Veterans ERG launched in 2023

Governance Achievements

• Allison has established an internal cross-functional working group to oversee the company's reporting relative to sustainability, the environment, societal impact, and governance.
• All employees receive training regarding compliance issues relevant to their specific areas of responsibility, as well as general training on the Code of Business Conduct

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions

Mitigation Strategies

• Instituted a four-step global Supplier Risk Assessment Process to identify, quantify, mitigate and monitor risk stemming from supply chain disruptions

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: SASB (Industrial Machinery and Goods sector), UN Global Compact, Universal Declaration of Human Rights

Certifications: ISO 14001 (five manufacturing sites), ISO 45001 (two manufacturing sites)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• eGen Flex electric hybrid propulsion system
• eGen Force electric propulsion system
• eGen Power family of fully electric axles

Awards & Recognition

• National Excellence in Training “Grand Award” (2022)