Kennametal Defined Benefit Pension Scheme
Climate Impact & Sustainability Data (2021, 2022-07-01 to 2023-06-30)
Reporting Period: 2021
Environmental Metrics
Total Carbon Emissions:27000 metric tons of carbon dioxide equivalents (Scope 1)
Scope 1 Emissions:27000 metric tons of carbon dioxide equivalents
Scope 2 Emissions:147000 metric tons of carbon dioxide equivalents
Renewable Energy Share:80% at Bangalore site (partial data)
Total Energy Consumption:1.65 million Gigajoules
Water Consumption:208 million gallons
Waste Generated:5000 metric tons (landfilled)
ESG Focus Areas
- Greenhouse gas emissions reduction
- Diversity and inclusion
- Environmental risk chemical elimination
- Compliance systems for business continuity
- Health and safety
Environmental Achievements
- 13% reduction in global direct GHG emissions (27,000 metric tons)
- 29% decline in landfilled waste compared to fiscal 2020
- 55% reduction in landfilled waste since fiscal 2018
- Switched three critical U.S. locations to 100% carbon-free nuclear energy, eliminating 12,260 metric tons of GHG emissions annually
Social Achievements
- Launched enhanced diversity and inclusion (D&I) strategy with four strategic pillars (awareness, acquisition, development, community)
- Created a Global Inclusion Council and four regional inclusion councils to champion D&I initiatives
- 12% reduction in total recordable incident rate compared to the prior fiscal year
- 87% below industry average rate for total recordable incident rate
Governance Achievements
- Created an executive-level ESG Steering Committee to oversee and coordinate ESG strategy
- Incorporated ESG strategy into corporate strategy review process with the Board of Directors
- Amended the charter of the Nominating/Corporate Governance Committee to formalize its oversight of the ESG strategy
Climate Goals & Targets
Short-term Goals:
- Install energy monitors at critical sites worldwide and establish baseline to set long-term targets
- Establish baseline for reduction in fleet emissions and set long-term target
- Establish baseline for conversion to carbon-free energy sources in the U.S. and set long-term target
- Conduct inventory of water use to determine future reduction opportunities
- Determine baseline year and set targets for production waste redirected to non-landfill in the U.S.
- Evaluate the potential to eliminate one on-site landfill
- Deploy systemic environmental compliance system globally by end of FY22
Environmental Challenges
- COVID-19 pandemic impact on operations and employee engagement
- Securing ongoing supply of critical materials like tungsten and cobalt
- Maintaining compliance with evolving ESG regulations and expectations
Mitigation Strategies
- Implemented strict COVID-19 protocols and processes
- Launched Give 75% a Shot campaign to encourage employee vaccination
- Diversified supply chain for critical materials through offtake agreements and regional sourcing strategies
- Developed robust ESG strategy and framework, incorporating stakeholder input and best practices
Supply Chain Management
Responsible Procurement
- Principles of Supplier Conduct
- Global Anti-Corruption and Anti-Bribery Policy
- Conflict Minerals Statement
- Due diligence for higher-risk suppliers
Climate-Related Risks & Opportunities
Opportunities
- Energy efficiency projects
- Conversion to carbon-free energy sources
Reporting Standards
Frameworks Used: SASB, TCFD
Reporting Period: 2022-07-01 to 2023-06-30
Environmental Metrics
ESG Focus Areas
- Environmental, Social, and Governance (ESG)
- Climate Change
- Stewardship
Climate Goals & Targets
Environmental Challenges
- Lack of specific stewardship priorities
Mitigation Strategies
- Monitoring significant votes to determine future stewardship priorities