Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced one customer's lighting costs by $12,900 per year through LED lighting implementation (40% brighter facilities)
• Assisted a customer in reducing SKUs stocked on-site from 76 to 21, resulting in a $319,417 cost savings (before accounting for reduced downtime, labor, lubricant, or sprocket and chain)
• Implemented Soft Starters and VFDs for greater equipment efficiency and longer lifespan
• Used V-belts and Synchronous Drives systems for better efficiency and reduced energy usage
• Provided pumps and related equipment for Atlanta's emergency water supply project, completed ahead of schedule and with zero change orders

Social Achievements

• Total community investments/donations of $95,962 in 2021
• Opened a corporate fitness center for fully vaccinated employees
• Conducted a virtual walking challenge with 153 participants, resulting in reported increased energy levels and improved stress management for many participants
• Implemented a Frequent Employee Feedback model for continuous feedback between employees and managers
• Added Diversity Training to the annual training program

Governance Achievements

• Implemented a robust data back-up strategy, resulting in full recovery from a cybersecurity attack with no data loss
• Implemented multifactor authentication, moved to an industry-leading mail security platform, and implemented a best-in-class managed endpoint detection and response platform
• Developed a thorough roadmap based on the NIST Cybersecurity Framework
• Developed a Business Continuity and Disaster Recovery Plan (BCP/DRP)

Climate Goals & Targets

Environmental Challenges

• Global pandemic
• Racial injustice
• Unprecedented extreme weather
• Widespread internet and data security breaches
• Market and supply chain disruptions
• Cybersecurity attack in August 2020

Mitigation Strategies

• Contact tracing, work-from-home options, PPE provision, and other COVID-19 safety measures
• Implementation of various cybersecurity initiatives (multifactor authentication, improved email security, endpoint detection, etc.)
• Development of a cybersecurity incident response plan and a business continuity and disaster recovery plan
• Conducting inquiries into the source of Conflict Minerals in products and establishing compliance requirements for direct suppliers

Supply Chain Management

Responsible Procurement

• Compliance requirements for direct suppliers regarding Conflict Minerals

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and services for renewable energy markets

Reporting Standards

Frameworks Used: SASB

Certifications: ISO 9001 (three facilities)

Sustainable Products & Innovation

• Products for renewable energy applications (biogas, biodiesel, etc.)
• LED lighting

Awards & Recognition

• Hormel Foods Supplier Spirit of Excellence Award (since 2012)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Implemented a cardboard recycling program at the BDC facility in Houston, reducing landfill waste by close to eight tons.
• Recycled 5,798 pallets and over 90 tons of recyclable materials at the Coca-Cola Supply Chain Services site.
• Recycled 9.6 tons of e-waste since 2018 through partnership with Altech Company.
• Implemented a recycling program at the corporate office in Houston.

Social Achievements

• Total community investments/donations in 2022: $125,972.41
• Opened a corporate fitness center for employees.
• Conducted a virtual walking challenge to promote employee wellness.
• Provided various employee benefits including EAP, Perks at Work, and parental leave.

Governance Achievements

• Implemented a Code of Conduct, Anti-Corruption Policy, and Code of Ethics for Senior Financial Officers.
• Established a Conduct Helpline for ethical concerns.
• Developed systems to avoid the use of Conflict Minerals and established compliance requirements for suppliers.
• Implemented multi-factor authentication, industry-leading mail security, and endpoint detection and response platform to enhance cybersecurity.

Climate Goals & Targets

Environmental Challenges

• Supply chain issues impacting customer operations (example provided)
• Energy consumption and GHG emissions
• Waste generation

Mitigation Strategies

• Partnered with Noresco for energy audit and implemented energy-reduction projects.
• Purchased 19 fully electric forklifts and implemented LED lighting at Coca-Cola Supply Chain Services site.
• Collaborated with Clean Tech Group and Control and Automation Team for energy-efficient audits for customers.
• Implemented cardboard recycling program, pallet recycling, and e-waste recycling initiatives.

Supply Chain Management

Responsible Procurement

• Conflict Minerals Policy and compliance requirements for suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Opportunities

• Development of energy-efficient products and services for renewable energy market.

Reporting Standards

Frameworks Used: SASB

Certifications: ISO 9001:2015 (three facilities)

Sustainable Products & Innovation

• Products for renewable energy applications (bioethanol plant pumps, biogas digester pumps, chemical injection systems, etc.)

Awards & Recognition

• Hormel Supplier Spirit of Excellence Award (since 2012)