Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• PWRcell units produced over 125 GWh of energy, which equates to over 88,673 metric tons of avoided CO2 emissions.
• Generac Grid Services delivered over 3,900 MWh of energy to the grid during peak demand or times of instability or intermittency.
• ecobee thermostats have delivered over 25TWh of energy savings

Social Achievements

• Launched a new partnership with Habitat for Humanity of Wisconsin.
• Named one of “America’s Best Mid-sized Employers” by Forbes.
• 99% of Generac people managers completed Unconscious Bias training.

Governance Achievements

• Adoption of an enterprise-wide strategic initiative to improve workforce diversity and promote an inclusive culture.
• Annual DE&I performance goals are required for people leaders.
• Quarterly compliance reviews with our Audit Committee.

Climate Goals & Targets

Environmental Challenges

• Transitioning away from fossil fuels towards renewable energy sources.
• Spiking demand due to the increased electrification of our cars and homes.
• Reliability challenges resulting from aging infrastructure and extreme weather.

Mitigation Strategies

• Strategic acquisitions of companies focused on renewable energy and grid services.
• Development and launch of innovative clean energy products (PWRmicro microinverter, PWRmanager load management system).
• Integration of hardware and software solutions across product categories to drive the evolution of the power grid.

Supply Chain Management

Responsible Procurement

• Supplier Qualification strategy
• Supplier Business Code of Conduct
• Conflict Minerals Policy

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB

Certifications: ISO 14001, ISO 9001

UN Sustainable Development Goals

• Goal 7: Affordable and Clean Energy
• Goal 9: Industry, Innovation and Infrastructure
• Goal 11: Sustainable Cities and Communities
• Goal 13: Climate Action

Sustainable Products & Innovation

• PWRcell Solar + Storage System
• PWRmicro microinverter
• PWRmanager load management system
• hybrid products with both a battery and a generator

Awards & Recognition

• Silver Award from Edison Awards
• ENERGY STAR Partner of the Year Award
• Energy Award for Innovation in Technology
• Bronze Cleanie Award
• FaMi Seal

Environmental Metrics

ESG Focus Areas

• Health & Safety
• Human Capital Management
• Cybersecurity
• Energy Management
• Stakeholder Engagement
• Business Ethics
• Social Impact of Supply Chain
• Water Management
• Human Rights
• Materials & Waste Management
• Environmental Impact of Supply Chain
• Critical Incident & Risk Management
• Compensation Practices
• Emissions Management
• Management of the Legal & Regulatory Environment
• Climate Change
• Environmental Protection & Biodiversity Impact
• Diversity, Equity & Inclusion
• Community Involvement
• Board Composition

Environmental Achievements

• Established a formal GHG Emissions Inventory to calculate emissions from facilities.
• Implemented location-level initiatives (LED lighting upgrades, energy optimization studies, air compressor studies) to reduce energy consumption.
• Reduced shrink wrap consumption by 80% from 2021 to 2022 at Pramac.
• Reduced foam sent to landfills by 17,000 pounds in North America.
• ecobee thermostats delivered over 6.4 TWh of energy savings.

Social Achievements

• Launched the “Our People Promise” outlining commitment to employee experience.
• Completed ambitious employee engagement survey with 46 questions.
• Employees contributed 2,044 volunteer hours.
• Revised Supplier Code of Conduct.
• Launched African American BERG.
• More than doubled the number of community programs supported from 2021 to 2022.

Governance Achievements

• ESG program transitioned to Corporate Development function.
• Created ESG Executive Committee and updated ESG Steering Committee and Task Forces.
• Completed a comprehensive Materiality Assessment.
• Established a plan to improve enterprise-wide data and reporting processes.
• Began incorporating climate change risks and opportunities into business planning using the TCFD framework.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to geopolitical risks and material allocation for energy transition.
• Reducing emissions from operations, particularly generator testing.
• Managing climate-related risks across strategic planning, risk management, and daily operations.

Mitigation Strategies

• Diversifying supply base to mitigate geopolitical risks.
• Investigating energy-efficient technologies and processes for sustainable testing methods.
• Engaging third-party consultants to advise on advancing ESG program and climate risk assessment.
• Integrating climate risks and opportunities into ERM framework.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Conflict Minerals Policy
• Supplier Business Code of Conduct
• Sustainable Procurement Policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts towards cleaner technologies

Opportunities

• Development of energy-efficient products and services
• Growth in clean energy, energy efficiency, and grid resiliency businesses

Reporting Standards

Frameworks Used: SASB, TCFD, GRI, UN SDGs

Certifications: ISO 9001, ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 3
• Goal 4
• Goal 5
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13

Report details how Generac's initiatives contribute to these goals through various programs and activities.

Sustainable Products & Innovation

• PWRcell battery storage systems
• ecobee smart thermostats
• Portable Power Stations
• Hydrogen fuel cell generators

Awards & Recognition

• Fortune 1000
• Fortune 100 Fastest Growing Companies
• Newsweek America’s Most Trustworthy Companies
• ENERGY STAR Partner of the Year
• Solar Builder Magazine Residential Project of the Year
• Grid Forward Grid Innovator Award
• Forbes Mexico’s Best Employers
• Great Place to Work Canada

Environmental Metrics

ESG Focus Areas

• Energy Management Ecosystems
• Continuity of Power
• Human Capital

Environmental Achievements

• Reduced total Scope 1 & 2 GHG emissions from 63,133 metric tons CO2e in 2022 to 60,814 metric tons CO2e in 2023.
• Improved hazardous waste recycling rate from 19% to 39.61%.
• Increased non-hazardous waste recycling rate from 87% to 90% in Wisconsin.
• Reduced wood and eliminated metals in Guardian Series Home Standby Unit packaging, resulting in easier unpacking and recycling.
• ecobee thermostats delivered over 8.5 TWh of energy savings, equivalent to removing over 335,000 gas-powered cars from the road.

Social Achievements

• Achieved a 10%+ reduction in the total recordable incident rate.
• 82% employee engagement survey participation.
• Employees contributed more than 3,580 volunteer hours.
• 95% of Generac leaders completed stereotype training.
• Launched a mentoring program for women at Generac.

Governance Achievements

• Established an executive ESG committee to oversee creation of multi-year roadmaps for ESG material topics.
• Implemented ESG risk and opportunity assessment tools to improve long-range planning.
• Enhanced ESG disclosures in accordance with SASB, GRI, and UN SDG frameworks.

Climate Goals & Targets

Environmental Challenges

• Potential physical risks to communities from climate change (severe storms, wildfires).
• Market risks inherent in the transition to a lower-carbon economy.
• Securing critical materials vulnerable to supply chain disruption.

Mitigation Strategies

• Incorporating climate-related risks and opportunities into strategic planning and risk management.
• Developing alternative sourcing strategies for critical materials.
• Implementing business continuity plans to address extreme weather events.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Sustainable Procurement Policy
• Conflict Minerals Policy
• Supplier Diversity Policy

Climate-Related Risks & Opportunities

Physical Risks

• Severe storms
• Wildfires

Transition Risks

• Regulatory changes
• Market shifts
• Technological advancements

Opportunities

• Development of energy-efficient products
• Growth in demand for resilient energy solutions

Reporting Standards

Frameworks Used: SASB, GRI, UN SDGs, TCFD

UN Sustainable Development Goals

• Goal 3
• Goal 4
• Goal 5
• Goal 7
• Goal 8
• Goal 9
• Goal 11
• Goal 12
• Goal 13
• Goal 17

See Appendix - Sustainable Development Goals (SDG)

Sustainable Products & Innovation

• Portable electric power stations
• Hydrogen fuel cell generators
• Residential fuel cell technology
• Portable solar panel
• Commercial-grade battery energy storage system
• Battery-powered brush mower
• Compact electric commercial mower

Awards & Recognition

• Fortune 1000
• ENERGY STAR® Partner of the Year
• Great Place to Work™ Canada
• Forbes - Mexico's Best Employers
• Good Design® Awards