Envista Holdings Corporation

Climate Impact & Sustainability Data (2019, 2020, 2021, 2022, 2023)

Reporting Period: 2019

Environmental Metrics

Total Carbon Emissions:8921 tCO2e/year

Scope 2 Emissions:1329 tCO2e/year

Scope 3 Emissions:7741 tCO2e/year

Renewable Energy Share:84% (data centers)

Total Energy Consumption:68000 MWh/year (approx)

Waste Generated:66.4 tons e-waste/year, (office waste data not specified)

ESG Focus Areas

Talent acquisition and retention
Training and human capital development
User data privacy and protection
Energy consumption
Carbon footprint
Supply chain
Gender equality
Diversity and equity

Environmental Achievements

84% of data centers' electricity consumption from renewable sources
Reduced CO2 emissions from business trips by 13%

Social Achievements

Launched Volunteer Paid Time Off (VPTO) program
39% of employees promoted were women
Employee Engagement Score: 70
Over 43,000 training hours delivered to employees

Governance Achievements

Adopted a Human Rights Policy
Implemented a Privacy Compliance Management Software
No data privacy incidents reported in 2019
Rolled out global procurement policy including CSR criteria

Climate Goals & Targets

Short-term Goals:

100% renewable energy for data centers

Environmental Challenges

High attrition rate
Maintaining data privacy while providing relevant advertising
Reducing environmental impact of data centers and business travel

Mitigation Strategies

Implemented global candidate experience survey and Talent CRM
Developed Privacy by Design approach and new privacy policy
Implemented energy-saving initiatives in offices and data centers, compensated emissions from two data centers
Encouraged video conferencing and limited business travel

Supply Chain Management

Responsible Procurement

Global procurement policy including CSR criteria

Climate-Related Risks & Opportunities

Physical Risks

Extreme weather events affecting data centers or suppliers

Transition Risks

Changes in consumer behavior, regulatory pressure

Opportunities

Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI G4 guidelines

Certifications: Network Advertising Initiative Standards, IAB Europe, Digital Advertising Alliance Self-Regulatory Principles for Online Behavioral Advertising, European Digital Advertising Alliance’s Self-Regulatory Principles, Digital Advertising Alliance of Canada’s Self-Regulatory Principles, TrustArc

Third-party Assurance:

Awards & Recognition

Monster Innovation Prize (2019)

Reporting Period: 2020

Environmental Metrics

ESG Focus Areas

Delivering Quality and Access
Supporting our People and Community
Safeguarding the Environment
Centering Ethics and Compliance
Practicing Good Governance

Environmental Achievements

Mexicali plant received Clean Industry Recertification from the Mexican government, exceeding compliance with safety and environmental standards.

Social Achievements

Launched two Employee Resource Groups (Envista Women + Friends and Envista Multi-Cultural + Friends).
Achieved 99% gender pay equity in the U.S.
Expanded Employee Assistance Program globally.

Governance Achievements

Established an Executive Diversity Leadership Council.
Board met 16 times in 2020.
All members of Audit, Compensation, and Nominating and Governance Committees are independent.

Climate Goals & Targets

Environmental Challenges

COVID-19 pandemic impacted business operations and customer businesses.
Supply chain disruptions due to fluctuating commodity prices and single-source suppliers.
Need to consolidate, analyze, and stress-test environmental metrics.

Mitigation Strategies

Implemented rigorous safety measures in manufacturing and distribution sites.
Enabled remote work for office staff.
Developed a global supplier assessment tool.
Developed a commodity-tracking program to monitor raw material prices.
Developed risk mitigation solutions for single-source suppliers.

Supply Chain Management

Responsible Procurement

Formalized and documented selection process
Ongoing supplier audits and assessments
Enforced performance standards including Good Manufacturing Practices
Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, GRI, UN SDGs

UN Sustainable Development Goals

SDG 3
SDG 5
SDG 8
SDG 9
SDG 12
SDG 16

Envista's alignment with the UNSDGs helps demonstrate commitment to being a good corporate citizen and increase the resilience and positive global impact of the business.

Sustainable Products & Innovation

KaVo Kerr’s PROPHYflex™ 4 Air Polishing Device (improved ergonomics)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:153 tCO2 (post offsetting efforts)

Scope 1 Emissions:Not disclosed

Scope 2 Emissions:Not disclosed

Scope 3 Emissions:Not disclosed

Renewable Energy Share:99.7%

Total Energy Consumption:66,175 MWh

Water Consumption:Not disclosed

Waste Generated:9 tons (e-waste from data centers)

Carbon Intensity:Not disclosed

ESG Focus Areas

Diversity, Equity, and Inclusion
Environment
Tech for Good and Education

Environmental Achievements

100% of data center energy now uses renewable energy sources or is offset by certificates

Social Achievements

Reached full pay parity among employees regardless of gender
Signed an LGBTQIA+ charter with L’Autre Cercle
Created a global disability policy
Launched a new Parents Community and leveled up engagement and support for six other global community groups
Launched a brand-new volunteering and giving platform, ‘GIVING’

Governance Achievements

Separation of duties of Chairperson of the board of directors and Chief Executive Officer

Climate Goals & Targets

Long-term Goals:

Not disclosed

Medium-term Goals:

30% of women in tech roles by 2030

Short-term Goals:

Define Criteo’s DEI Statement and Global DEI Strategy by 2021
Maintain Inclusion Index at 75% or above
Increase female pipeline with closer to 50% promotions globally
Maintain pay parity throughout Criteo
Define an Environmental Strategy and Action plan by the end of 2022
Identify and implement actions to reduce environmental impact by the end of 2022
Measure environmental footprint of digital products and services by the end of 2022
Reduce office’s non-decarbonized energy consumption by 30% by the end of 2025
Set up a partnership with a Supplier Sustainability Rating Platform by the end of 2022
At least 95% of active users complete at least two training sessions
At least 80% of employees complete Compliance training
Increase the number of members in each community by 30% in 2022
Organize at least 30 CSR-related events per year
Have 30% of employees on the volunteering platform by the end of 2022

Environmental Challenges

Intense competition for employee talent
Intense competition in the market
Access to a consistent supply of advertising inventory
Failure by Criteo AI Engine to accurately predict engagement by users
Regulatory developments regarding internet or online matters
Maintaining the quality of content for clients and publishers
Effective integration of acquired businesses
Managing growth and the shift in client portfolio
Potential delays or technical issues with the self-registration and onboarding module
Expanding into new industry verticals and advertising channels
Downturn in retail, travel and classified industries
Client concentration in certain local markets and solutions
Fluctuations in results of operations
Restrictions on data collection
Failures in systems and infrastructure
Protecting proprietary information and intellectual property
Potential intellectual property infringement
Inability to use licensed software
Volatile market price for ADSs
Activities of predatory hedge funds or short sellers
Need for additional capital
Restrictions in credit agreement
Provisions in by-laws and French corporate law that may delay or discourage a sale of the Company
Economic uncertainty leading to reduced advertising spending
Credit risk of clients and customers

Mitigation Strategies

Investing in new solutions and technologies
Adapting policies to support remote working and implementing COVID-19 safety measures
Implementing a global roadmap for gender equality
Investing in talent acquisition and development programs
Collaborating with industry partners to extend capabilities of the Criteo Commerce Media Platform
Executing acquisitions to accelerate Commerce Media Platform strategy
Improving employee value proposition and experience
Developing and deploying the self-registration and onboarding module
Expanding into new industry verticals and advertising channels
Rightsizing Data Centers to increase energy efficiency
Extending the lifecycle of servers
Implementing sustainable practices among vendors
Including “Eco Responsibility” criteria in RFPs
Implementing a Health & Safety Management System
Providing psychological support and financial support for teleworking equipment
Implementing a new Hybrid Working policy
Implementing strict security measures to protect data
Implementing a Privacy Compliance Management Software
Raising awareness of cyber-security risks
Participating in self-regulatory programs
Enhancing disclosures on material ESG topics
Adopting the SASB reporting framework
Addressing ethical concerns proactively through a Product Ethics Committee
Reviewing and updating Advertiser and Publisher Guidelines
Implementing a global procurement policy including CSR criteria
Enhancing suppliers’ risks management processes

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

Including CSR criteria in supplier selection
Implementing sustainable criteria in purchasing of furniture and office supplies

Climate-Related Risks & Opportunities

Physical Risks

Severe weather events affecting data centers or suppliers

Transition Risks

Not disclosed

Opportunities

Not disclosed

Reporting Standards

Frameworks Used: SASB

Certifications: Null

Third-party Assurance: Deloitte

UN Sustainable Development Goals

Contributions described in section ii.d.

Sustainable Products & Innovation

Not disclosed

Awards & Recognition

2021 Diversity Award with France Digitale
2021 Organization and Culture Award with the International Innovation Awards (IIA)
2021 Diversity Champion Award and Inclusion Award
Campaign US’ Female Frontier Award for Megan Clarken
HEROes 100 Women Role Model List for Megan Clarken

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:12,564.91 tCO2e/year (Scope 1 & 2)

Scope 1 Emissions:8,351.94 tCO2e/year

Scope 2 Emissions:4,212.97 tCO2e/year

Total Energy Consumption:77,042.52 GJ/year

ESG Focus Areas

Sleep Well
People Well
Earth Well
Govern Well

Environmental Achievements

Rolled out BrainBox AI's AI technology to 214 stores, resulting in improved HVAC energy efficiency and lower carbon emissions equivalent to the emissions of approximately four million kilometres of driving by a standard car.
Diverted over 125,000 beds from landfills through recycling.
Donated over 33,000 refurbished mattresses.

Social Achievements

Donated over $720,000 worth of sleep essentials to support Ukrainian humanitarian relief efforts.
Donated $200,000 to CMHA for World Sleep Day and back-to-school campaign.
Expanded wellness benefits to include family leave top-up, supplementary parental leave, and an expanded wellness credit.
Launched All for Sleep mobile app.
Opened seven new Sleep Country/Dormez-vous Express stores in Walmart locations.

Governance Achievements

Delivered general IT security awareness training to associates.
Added a new third-party external cyber assessment of cybersecurity posture.
100% of executive leadership team signed off on the new integrated Code of Conduct.
99% of suppliers and strategic partners signed off on the Supplier Code of Conduct.

Climate Goals & Targets

Long-term Goals:

Achieve net-zero emissions by 2040.

Medium-term Goals:

Update remaining stores with compatible HVAC equipment with AI-enabled thermostats in 2023.

Short-term Goals:

Switch out a portion of 5-ton cube trucks to vans to cut emissions on store-transfer activity by an estimated 60%.

Environmental Challenges

Inflation.
Ongoing supply chain disruptions.
Cybersecurity risks.

Mitigation Strategies

Investment in cybersecurity, including a new third-party external assessment.
Implementation of BrainBox AI technology for energy efficiency.
Supplier Code of Conduct to ensure ethical sourcing and fair working conditions.

Supply Chain Management

Supplier Audits: 99% of suppliers and strategic partners signed off on the Supplier Code of Conduct

Responsible Procurement

Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, SASB – Multiline Specialty Retailers and Distributors

UN Sustainable Development Goals

3.8
5.1
5.5
8.5
8.8
12.2
12.5
12.6
13.2
17.16

Sleep Country contributes to several SDGs through commitments and initiatives related to resource management, health coverage, gender equity, employment, labor rights, waste reduction, sustainable practices, climate change measures, and global partnerships.

Sustainable Products & Innovation

Simba Hybrid Green Organic Mattress

Awards & Recognition

Canada’s Most Admired Corporate Cultures Award (2022)
Endy banner recertified as a Best Workplace for Women and a Best Workplace for Mental Wellness (2022)

Reporting Period: 2023

Environmental Metrics

Social Achievements

Maintained 99% gender pay equity in the U.S. and 99% race/ethnicity pay equity in the U.S.
Updated bi-annual EHS Risk Assessment tool to increase environmental health and safety results and engagement.
Founded the Envista Smile Project, a philanthropic foundation designed to improve the smiles and oral health of disadvantaged communities.

Climate Goals & Targets

Medium-term Goals:

Grow with the market as we exit 2024.

Short-term Goals:

Further accelerate orthodontic business, doubling Spark business by 2026, and driving sequential margin improvements.
Re-accelerate growth of implant business, leveraging premium and value implant franchises to provide full solutions.

Environmental Challenges

Difficult operating environment with a noticeable slowdown in demand for higher-end dental procedures.
Geopolitical challenges including conflicts in Ukraine and the Middle East, and cybersecurity attacks impacting the North American distribution channel.
Performance issues in North America.
Cybersecurity issues that disrupted the North American distribution channel for Kerr consumables products.

Mitigation Strategies

Thoughtful investments in sales and marketing, training and education, and community development in North America.
Leveraging the successful European leadership model and playbook to reinvigorate growth in North America.
Disciplined, EBS driven, approach to capital deployment and M&A.
Proactive price management across the portfolio, streamlining organization, reducing expenses, and concentrating efforts in areas with sustainable competitive advantage.