Climate Change Data

Environmental Metrics

ESG Focus Areas

• Health and Safety
• Environmental Sustainability
• Community Engagement
• Diversity and Inclusion
• Ethical Business Practices

Environmental Achievements

• Achieved second-lowest Lost Time Accident (LTA) rate in 120-year history; nearly 75% of facilities experienced zero LTAs.
• Reduced LTAs by more than half and OSHA Recordable Rate by 18% since 2009.
• Diverted 90% of waste from landfills.
• Saved $1 million through waste reduction initiatives over the past few years.
• Installed a 1.28 megawatt solar array on the roof of its Chennai, India factory, reducing carbon footprint by 1.5 million kilograms per year.

Social Achievements

• Offered competitive benefits, including medical plans, supplemental benefits, and parental leave.
• Provided numerous professional development and training opportunities for associates.
• Established the Timken Scholarship Program, awarding more than $23 million in scholarships since its inception.
• Supported community development programs globally, including providing medical enhancements in India and supporting various charities in the US and other countries.
• Actively promoted diversity and inclusion through associate resource groups (ARGs).

Governance Achievements

• Created a cross-functional CSR Steering Committee to monitor and evaluate CSR activities.
• Received a “Winning” designation by 2020 Women on Boards for board diversity (27% women).

Climate Goals & Targets

Environmental Challenges

• Regulatory changes related to tighter emissions controls could potentially increase operational costs.
• Waning government subsidies for renewable power could negatively impact wind and solar installations.
• Severe weather associated with climate change could potentially impact operations.

Mitigation Strategies

• Developing and implementing energy-efficient products and solutions to support renewable energy industries.
• Investing in environmental protection equipment and advanced plant operational practices.
• Implementing effective EHS management systems in accordance with ISO Standards 45001 and 14001.

Supply Chain Management

Supplier Audits: All new direct material suppliers undergo stringent onboarding compliant with IATF standards, including on-site visits and continual compliance audits.

Responsible Procurement

• Supplier Code of Conduct addressing anti-corruption, child labor, and forced labor.

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather

Transition Risks

• Regulatory changes (emissions controls), waning government subsidies for renewable power

Opportunities

• Growth in wind and solar power industries

Reporting Standards

Frameworks Used: GRI Standards 2018, Core option

Certifications: ISO 14001 (17 plants), ISO 45001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• High-efficiency bearings for energy savings in various applications.
• Bearings and couplings for more powerful, lower-emission tractors.
• Turbine-specific bearings for wind turbines.
• Drive solutions for concentrated solar power (CSP) and photovoltaic (PV) systems.

Awards & Recognition

• Nine times recognized as one of the world’s most ethical companies.
• Winning designation by 2020 Women on Boards.

Environmental Metrics

ESG Focus Areas

• Environment
• People
• Community
• Governance

Environmental Achievements

• Reduced aggregate Scope 1 and 2 greenhouse gas emissions intensity by 50 percent by 2030 (target)
• Installation of new air compressors at the Poland plant, reducing annual greenhouse gas output generated from heating by approximately 17 percent.
• Increased renewable energy use in Chennai, India plant to approximately 30% of total energy consumed.

Social Achievements

• Named one of America’s Most Responsible Companies by Newsweek (2021 and 2022)
• Launched Inclusive Leader Program, BetterUp online platform, GlobeSmart cross-cultural learning platform, and partnered with PSI Services for leadership assessments.
• Expanded associate development efforts and invested in trusted, agile and global leaders.

Governance Achievements

• Long-established ethics and compliance program with strong board oversight.
• Regular training for all employees on ethics and compliance.
• Third-party helpline for anonymous reporting of incidents.

Climate Goals & Targets

Environmental Challenges

• Increased energy consumption and water withdrawal year-over-year (2020-2021), although at a lower rate than revenue growth.
• Gaps in aggregate Scope 1 and 2 GHG emissions inventory (estimated 10-15% of total).

Mitigation Strategies

• Target to reduce aggregate Scope 1 and Scope 2 greenhouse gas emissions intensity by 50 percent by 2030.
• Investing in plant-efficiency projects and purchasing renewable energy.
• Expanding data collection efforts to reduce estimated portion of overall emissions.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct addressing anti-corruption, child labor, forced labor, and human rights.

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather impacting operations

Transition Risks

• More restrictive emissions regulations

Opportunities

• Increased demand for renewable energy products

Reporting Standards

Frameworks Used: GRI Standards 2020, Core option, TCFD, SASB

Certifications: ISO 14001 (21 facilities), LEED Gold (2 locations)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Power-dense bearings for electric vehicles
• Precision motion control solutions for solar power applications
• Remanufactured products and services

Awards & Recognition

• Newsweek: America’s Most Responsible Companies (2021 and 2022)
• Forbes: America’s Best Employers (2021), Best Employers for New Graduates (2021 and 2022), Best Employers for Women (2021)

Environmental Metrics

ESG Focus Areas

• Sustainable Operations
• Sustainable Products
• Workforce Diversity and Development
• Community Engagement
• Climate Change

Environmental Achievements

• Reduced emissions intensity by 25% since 2018 (halfway to 50% reduction target by 2030)
• Increased renewable energy use by approximately 10x since 2018
• Diverted nearly 90% of waste from landfills in 2022
• Recycled more than 56,000 metric tons of waste in 2022

Social Achievements

• Named one of America’s Most Responsible Companies by Newsweek for the third straight year
• Honored as one of the World’s Most Ethical Companies® by the Ethisphere Institute for the 12th time
• Recognized by Fortune as one of America’s Most Innovative Companies and by Forbes as one of America’s Best Large Employers
• Launched BetterUp coaching program for employee career advancement and wellbeing (over 100 employees participated)
• Global Employee Assistance Programs (EAP) providing 24/7 confidential services to employees and their households
• Active Employee Resource Groups (ERGs) supporting diversity and inclusion initiatives

Governance Achievements

• 82% Board independence
• 36% gender and ethnic diversity on the Board
• Strong focus on shareholder engagement (over 400 interactions in 2022)
• Annual advisory vote on executive compensation with consistently strong shareholder support

Climate Goals & Targets

Environmental Challenges

• Meeting 2030 greenhouse gas emissions reduction target
• Maintaining a safe and healthy work environment
• Attracting and retaining diverse talent

Mitigation Strategies

• Investing in energy efficiency capital projects
• Increasing use of renewable energy through on-site solar arrays and purchase power agreements
• Implementing sustainable sourcing decisions
• Improving energy efficiency and recycling
• Reducing waste to landfills
• Partnering with recruiting firms specializing in diverse candidates
• Offering talent development programs, coaching, and mentoring

Supply Chain Management

Supplier Audits: 70% of main suppliers actively pursue sustainability programs

Responsible Procurement

• Supplier sustainability will be a key factor in commodity strategies and sourcing decisions starting in 2024
• Supplier Code of Conduct addressing anti-corruption, child labor, and forced labor

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events impacting operations

Transition Risks

• More restrictive emissions regulations

Opportunities

• Increased demand for renewable energy products

Reporting Standards

Frameworks Used: GRI Standards 2021, SASB (partially utilized in materiality assessment)

Sustainable Products & Innovation

• Tapered Double Inner (TDI) mainshaft roller bearing for wind turbines
• Lightweight aluminum mechanical arms for automated warehouses
• BEKA ONE pump for consistent bearing lubrication
• Timken® hygienic bearings for food and beverage processing

Awards & Recognition

• Newsweek's America’s Most Responsible Companies
• Ethisphere Institute's World’s Most Ethical Companies®
• Fortune's America’s Most Innovative Companies
• Forbes' America’s Best Large Employers

Environmental Metrics

ESG Focus Areas

• People
• Planet
• Product

Environmental Achievements

• Reduced aggregate Scope 1 and Scope 2 emissions intensity by approximately 40% since 2018.
• Increased on-site renewable energy and power purchase agreements by 100% since 2018.
• Diverted nearly 87% of waste from landfills in 2023.
• Reduced global water withdrawal by 10% from 2018 to 2023.

Social Achievements

• Achieved a 93% response rate in the 2022 employee engagement survey.
• Launched the Development-Driven Leader Program to enhance professional development.
• Implemented AI-enabled motion-capture technology, reducing ergonomic risk-assessment time by 80%.
• Recognized among Newsweek’s America’s Greatest Workplaces for Diversity in 2024.

Governance Achievements

• The Timken Board of Directors and its Committees play an important oversight role for CSR-related topics.
• The Nominating and Corporate Governance Committee regularly reviews trends and recommends best practices.

Climate Goals & Targets

Environmental Challenges

• Maintaining high global standards of compliance, sustainability, and operational excellence.
• Addressing ergonomic safety in manufacturing operations.
• Reducing waste generation and water usage.
• Managing climate-related risks.

Mitigation Strategies

• Implemented a third-party, cloud-based software solution to enhance global EHS efficiency.
• Introduced AI-enabled motion-capture technology for ergonomic risk assessment.
• Implemented innovative waste management practices and effective recycling systems.
• Doubled capital investments from 2022 to 2023 to fund energy efficiency and emissions reduction projects.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct addressing environmental laws and regulations; stringent onboarding process for new suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather

Transition Risks

• More restrictive emissions regulations

Opportunities

• Increased demand for renewable energy products

Reporting Standards

Frameworks Used: GRI Standards 2021, SASB (partially), TCFD (partially)

Certifications: ISO 50001:2018 (Chennai plant)

Sustainable Products & Innovation

• ePDFE tapered roller bearings
• Bearings with nanocomposite ceramic coatings
• IP69K-rated bearings

Awards & Recognition

• America’s Greatest Workplaces (Newsweek)
• Best Companies to Work For (U.S. News & World Report)
• World’s Most Innovative Companies (Fast Company)