Climate Change Data

Environmental Metrics

ESG Focus Areas

• Carbon emission reduction
• Energy efficiency
• Nuclear power
• Sustainable products

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Appointment of Daniel Desjardins to the Board of Directors

Climate Goals & Targets

Environmental Challenges

• Challenging global macroeconomic environment
• Termination of a proposed acquisition transaction
• Lower orders for North American operations in the marine sector and for maintenance, repair, and overhaul (MRO) activity
• Lower sales in North American and Italy due to large orders in the previous fiscal year and lower MRO sales in North America
• Less favorable product mix due to the execution of certain low-margin projects
• Asbestos litigation
• Increased geopolitical tensions, uncertain macroeconomic environment, higher interest rates, and inflation
• Shipping delays due to the situation in the Red Sea
• Global supply chain disruptions related to the Ukraine conflict

Mitigation Strategies

• Implemented actions to drive cash by leveraging the global scale of its business, maximizing strategic procurement advantages, and optimizing inventory management
• Strong fourth-quarter results with heightened sales volume and healthy profit margins
• Focus on high-growth sectors like nuclear, defense, oil and gas, and LNG
• Providing engineered valves and steam traps that are the most reliable on the market
• Closely monitoring the global situation, including increased geopolitical tensions and an uncertain macroeconomic environment
• Diligent management of working capital and capital investments to foster free cash flow generation
• Vigorously defending allegations in asbestos lawsuits
• Stopping orders affected by sanctions imposed on Russia due to the Ukraine conflict
• Implementing policies and procedures to effect compliance with international laws

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Growth opportunities driven by the ongoing energy transition

Reporting Standards

Frameworks Used: IFRS

Certifications: Null

Third-party Assurance: PricewaterhouseCoopers LLP

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Energy-efficient solutions

Awards & Recognition

• AK Velan - 1991 Canada Export Award