Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Products are greater than 88% efficient compared to typical electrical grid efficiencies of 40% to 50%. As a result, our greenhouse gas (GHG) emissions are typically half that of the electrical grid.
• Our products are sold with our patented Ultera® technology which nearly eliminates all criteria pollutants such as NOx and CO.

Social Achievements

• Employee health and safety continues to be a priority in every aspect of our business.
• Implemented regular communication regarding impacts of the COVID-19 pandemic, including health and safety protocols and procedures.
• Providing additional days of leave for full- and part-time employees to cope with the illness.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• The COVID-19 pandemic has significantly impacted supply chains, curtailed global economic activity, and caused significant volatility and disruption in global markets.
• Supply chain issues and project deferrals negatively impacted revenues in 2021.
• Customer payment delays due to COVID-19, attributable to temporary business shutdowns, resulting in declines in revenues and cash flows from our customers and delays in project completion due to delays in government project inspections and a general slowdown in business activity and in some cases, customers ceasing business activities altogether.
• Material weakness in disclosure controls and procedures and internal control over financial reporting.

Mitigation Strategies

• Obtained and received forgiveness for Paycheck Protection Program loans.
• Received Employee Retention Credit benefits.
• Implementing systems to put the proper control procedures in place to remediate the material weakness in financial reporting.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Hybrid air-cooled chiller

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Clean energy
• Environmental impact reduction in agriculture

Environmental Achievements

• Near zero NOx and CO emissions systems for gasoline, propane and natural gas engines
• Reduced carbon footprint for customers through high-efficiency cogeneration products

Social Achievements

• Not disclosed

Governance Achievements

• Formation of a special board committee to investigate expanded business opportunities for Controlled Environment Agriculture.

Climate Goals & Targets

Environmental Challenges

• Higher material costs reducing product margin
• Reduced lower margin installation activity
• Site closures due to COVID

Mitigation Strategies

• Instituted price increases
• Focusing on clean cooling in key market segments (controlled environment agriculture)
• Continue to increase market share in regional cannabis markets

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Tecochill Hybrid Drive Air-Cooled Chiller

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Products are greater than 88% efficient compared to typical electrical grid efficiencies of 40% to 50%. Greenhouse gas (GHG) emissions are typically half that of the electrical grid.
• Ultera® technology nearly eliminates all criteria pollutants such as NOx and CO.

Social Achievements

• Assumption of Aegis Energy Services maintenance agreements, hiring eight Aegis employees.
• Instituted web-based training for all employees.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Supply chain issues and project deferrals.
• Higher energy prices for natural gas.
• Increased cybersecurity risks.
• Increased or ongoing supply chain challenges.
• Volatility related to the trading prices of commodities.
• Customer payment delays.
• Material weakness in disclosure controls and procedures and internal control over financial reporting.

Mitigation Strategies

• Seeking additional outside financing.
• Developing and implementing new systems to simplify manufacturing processes, product sourcing methods, and supply chain.
• Implementing changes to user access passwords, conducting a full audit of user accounts and implementing multi-factor authentication for network and workstation access.
• Implementing a company-wide ERP system.
• Implementing systems to put the proper control procedures in place to remediate the material weakness in financial reporting.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Tecochill Hybrid-Drive Air-Cooled Chiller
• Ultera low-emissions technology

Awards & Recognition

• Not disclosed

Environmental Metrics

Environmental Achievements

• Our systems are greater than 88% efficient compared to typical electrical grid efficiencies of 40% to 50%. As a result, our greenhouse gas (GHG) emissions per KwH are typically half that of the electrical grid.

Climate Goals & Targets

Environmental Challenges

• Higher energy prices for natural gas may affect the performance of our Energy Production Segment and the cost differential between grid generated energy and natural gas sourced energy using our cogeneration equipment.
• The war in Ukraine and the conflict in the Middle East may result in higher cybersecurity risks, increased or ongoing supply chain challenges, and volatility related to the trading prices of commodities.
• Customer order delays or deferrals; service delays due to customer facility closures, in some cases for extended periods and a reduction in our energy production revenues due to business closures and increased remote work and learning environments.

Mitigation Strategies

• Developing the Tecochill Hybrid-Drive Air-Cooled Chiller to offer added resiliency from two power sources (grid or renewable energy and natural gas engine).
• Focusing on opportunities for low carbon Controlled Environment Agriculture (CEA) to address critical issues affecting food and energy security.
• Cost-cutting strategies, delay production, curtail research and development efforts, or implement other measures, which may adversely affect our results of operations and financial conditions and the price of our stock (if adequate financing is not available).

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products (Tecochill Hybrid-Drive Air-Cooled Chiller)

Sustainable Products & Innovation

• Tecochill Hybrid-Drive Air-Cooled Chiller