Climate Change Data

Environmental Metrics

ESG Focus Areas

• Employee Development
• Diversity & Inclusion
• Health & Safety
• Environmental Sustainability
• Community Involvement

Environmental Achievements

• Reduced energy consumption through initiatives like reflective roofing and LED lighting.
• Recycled 11,656,008 lbs of steel (5,800 tons) and 974,000 lbs of other recyclable waste (487 tons).
• Reduced water usage through reverse osmosis technology and collaboration with local sewage districts.
• Transitioned from 100% gas-powered hopper spreaders in 2008 to over 90% electric-powered in 2020.

Social Achievements

• Recognized as a Top Workplace in southeast Wisconsin for 11 consecutive years.
• Launched DD Connect initiative focusing on employee and family financial wellness.
• Provided COVID-19 support to employees, including paid leave and health insurance.
• Maintained a low employee turnover rate.

Governance Achievements

• Implemented a robust Code of Conduct covering various ethical aspects.
• Strong corporate governance policies overseen by the Board of Directors.
• Transparent communication with employees through surveys and open dialogue.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its impact on operations and employee well-being.
• Need for further diversification of the workforce.
• Reducing landfill waste from manufacturing processes.

Mitigation Strategies

• Developed a Safe Return to Work plan with COVID-19 safety protocols.
• Investing in initiatives to identify and recruit diverse talent.
• Developing a long-term plan to reduce landfill waste and increase recycling.

Supply Chain Management

Responsible Procurement

• Douglas Dynamics Supplier Code of Conduct

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Electric hopper spreaders
• Brine application equipment

Awards & Recognition

• Top Workplace award (11 years)

Environmental Metrics

ESG Focus Areas

• Human Capital Management
• Diversity and Inclusion
• Community Involvement
• Ethics and Integrity
• Board Governance and Oversight
• Douglas Dynamics Management System
• Occupational Health & Safety
• Environmental Management and Climate Change
• Energy and Emissions
• Water and Waste Management
• Responsible Supply Chain
• Product Innovation & Environmental Impact
• Public Policy and Industry Associations

Environmental Achievements

• Reduced electricity use by 110 kWh annually at Rockland, Maine facility by replacing compressors.
• Converted 362 fixtures to LED in Rockland, Maine facility, saving $25,000 annually.
• Upgraded AR 653 Compressor in Rockland, Maine facility, saving 598,373 kWh annually.
• Replaced 155 fluorescent light fixtures with LEDs in Rockland, Maine office, improving energy efficiency by 76%.
• 100% of scrap steel recycled.
• All cardboard recycled.

Social Achievements

• Recognized by the Milwaukee Journal Sentinel as a Top Workplace in Southeast Wisconsin for the 13th consecutive year.
• Launched an Employee Engagement survey in 2021.
• Launched DD CONNECT initiative in 2021 to support employee and family well-being.
• Provided employees and families with access to financial wellness programs.
• Rolled out cybersecurity training sessions and GEDWorks program in 2022.
• Sponsored Milwaukee Pride Parade in June 2022.

Governance Achievements

• Majority of independent directors on the Board (six out of eight).
• Regular meetings of independent directors.
• Appointment of a Lead Independent Director.
• Annual self-evaluations of the Board and its committees.
• Stock ownership guidelines for directors and executive officers.
• Zero instances of non-compliance with laws and regulations.

Climate Goals & Targets

Environmental Challenges

• Increase in energy use and emissions in 2022 due to new facility operations, higher headcount, and colder temperatures.
• Limited ability to determine the ultimate origin and source of conflict minerals in products due to indirect supplier relationships.

Mitigation Strategies

• Working to develop systems to collect accurate and complete environmental data.
• Using 2022 emission data to inform reduction targets and actions.
• Continuing to monitor emissions data to track progress and identify areas for improvement.
• Working with suppliers to obtain information about potential conflict minerals and report as required by SEC rules.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• On-site inspections
• Review of employment records
• Private interviews with employees
• Supplier training programs

Climate-Related Risks & Opportunities

Physical Risks

• Decline in snowfall levels due to climate change

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI 2021 Universal Standards, SASB 2018 Standards for the Auto Parts Industry

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 10 (Reduced Inequalities)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 15 (Life on Land)
• Goal 6 (Clean Water and Sanitation)
• Goal 4 (Quality Education)
• Goal 5 (Gender Equality)

Various initiatives throughout the report contribute to these SDGs.

Sustainable Products & Innovation

• Electric-powered hopper spreaders
• Brine products to reduce salt usage
• Right-sized snowplows to improve efficiency
• Products with various edges to reduce deicing solutions needed
• Quick-mount systems to reduce vehicle weight and emissions

Awards & Recognition

• 2022 Innovative Iron Award from Compact Equipment magazine for Western Products' PILE DRIVER™ pusher plows.