Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Community & Society
• Associates
• Suppliers
• Customers
• Shareholders

Environmental Achievements

• Reduced GHG emissions from 13,800.82 metric tons in 2018 to 11,974.79 metric tons in 2019
• Reduced water consumption from 61,634 cubic meters in 2018 to 72,463 cubic meters in 2019 (Note: this shows an increase, not a reduction)
• Reduced hazardous waste generation from 3.08 metric tons in 2018 to 11.07 metric tons in 2019 (Note: this shows an increase, not a reduction)
• Recycled over 100 tons of electronic equipment since 2008
• Implemented Call2Recycle Battery Recycling program in Atlanta CFC in 2019
• Partnership with Waste to Charity to reduce waste and enhance communities
• Harrisburg CFC deployed a packing optimization system reducing material usage

Social Achievements

• Made total charitable and in-kind contributions of approximately $36 million over the past five years
• Donated surplus products to non-profit organizations totaling approximately $8 million annually
• Launched "Helping Heroes" program to support military veterans and their families
• MSC associates donated nearly 8,000 volunteer hours since 2015
• Partnered with Keystone Human Services to provide job opportunities for adults with autism
• Partnered with Autism Society's IGNITE Program to support adults with Autism and Asperger’s syndrome

Governance Achievements

• Maintains long-standing policies and practices to ensure that MSC is managed with integrity and in shareholders' best interests
• Established a standing Nominating/Corporate Governance Committee in November 2003
• Implemented a Code of Business Conduct
• Established Fraud, Abuse & Waste and Open Board Hotlines for reporting questionable activities
• Achieved ISO 9001:2015 certification

Climate Goals & Targets

Environmental Challenges

• Climate change risks including resource availability and pricing, physical changes to the natural environment, natural disasters, market shifts, consumer behavior, and regulatory changes
• Maintaining a safe working environment

Mitigation Strategies

• Continuously working to reduce environmental and climate impact by pursuing lean improvement opportunities
• Implemented risk-analysis processes and risk-prevention techniques
• Provided environmental health and safety awareness training
• Utilized third-party consulting firms to audit facilities
• Implemented MoveSMART program to reduce material-handling injuries

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier agreements requiring compliance with laws prohibiting slavery and human trafficking; vetting of new suppliers; product compliance with OSHA Hazard Communication Standard and Globally Harmonized System

Climate-Related Risks & Opportunities

Physical Risks

• Natural disaster events

Transition Risks

• Market shifts, consumer behavior, changes in regulation and taxation

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO 45001 (Columbus CFC), ISO 9001:2015

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Thousands of environmentally friendly products with certifications such as Green Seal, Safer Choice, ECOLOGO, GREENGUARD, EnergyStar, WaterSense and USDA Bio-preferred

Awards & Recognition

• 2017 Project Excellence winner in Strategic Safety Associates' MoveSMART® Awards (Atlanta CFC)
• 2015 Award of Excellence from the Georgia Department of Labor (Atlanta CFC)
• 2017 Verint Systems Engage Global Customer Awards Program in the "Enriching Interactions" category
• Massachusetts Higher Education Consortium annual customer service award
• 2020 Top Employer by DiversityJobs
• Forbes magazine’s America’s Best Large Employers in 2017
• Computerworld magazine’s 100 Best Places to Work in IT in 2017 and 2018
• “One Star” accreditation in 2018 from Best Companies in the United Kingdom
• Top Workplaces 2019 honor by Columbus CEO Magazine
• DuPont's annual Growth & Partnership award to MSC's Safety Product team in 2018

Environmental Metrics

ESG Focus Areas

• Environment
• Community & Society
• Associates
• Suppliers
• Customers
• Shareholders

Environmental Achievements

• Reduced greenhouse gas emissions to 1,066.67 metric tons in 2020.
• Improved energy efficiency across CFCs and offices through LED lighting and motion sensors.
• Reduced paper transactions and documentation.
• Implemented packing optimization system reducing material usage.
• Recycled over 100 tons of electronic equipment since 2008.
• Donated $4,507,263 worth of products in 2020 through Waste to Charity and WIN Warehouse.
• Recycled 26,330 pounds of materials at Davidson CSC in 2020.
• Implemented Call2Recycle Battery Recycling program.

Social Achievements

• Made total charitable and in-kind contributions of approximately $36 million over the past five years.
• Donated more than $400,000 to Ronald McDonald House since 1995.
• Donated PPE and funds totaling over $200,000 in response to the COVID-19 Pandemic.
• Launched “MSC Helping Heroes” program supporting military veterans and their families.
• Associates donated nearly 10,000 volunteer hours since 2015.
• Partnered with various non-profit organizations for community engagement.
• Implemented a hybrid approach to office work, providing flexibility to employees.

Governance Achievements

• Maintained a record of zero environmental compliance-related fines or penalties for several years.
• Established a standing Nominating/Corporate Governance Committee.
• Implemented a Code of Business Conduct.
• Established Fraud, Abuse & Waste and Open Board Hotlines for reporting.
• Achieved ISO 9001:2015 certification.

Climate Goals & Targets

Environmental Challenges

• Climate change risks including resource availability, natural disasters, market shifts, and regulatory changes.
• COVID-19 pandemic impacting in-person volunteer activities and workplace operations.

Mitigation Strategies

• Implemented risk-analysis processes and risk-prevention techniques.
• Pursued lean improvement opportunities to reduce environmental impact.
• Engaged in virtual events, online fundraising, and virtual giving programs during the pandemic.
• Developed plans for a hybrid approach to office work.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Product compliance with OSHA Hazard Communication Standard and GHS; supplier compliance with environmental and safety regulations; prohibition of certain substances (PCBs, asbestos, mercury); evaluation of suppliers based on environmental and social performance; Conflict Minerals Policy; Anti-Trafficking and Anti-Slavery Policy.

Climate-Related Risks & Opportunities

Physical Risks

• Natural disaster events

Transition Risks

• Market shifts, consumer behavior, changes in regulation and taxation

Opportunities

• Implementing new technologies, driving innovation and improving operational efficiency.

Reporting Standards

Frameworks Used: Null

Certifications: ISO 45001 (Columbus CFC), ISO 9001:2015

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Thousands of environmentally friendly products with certifications such as Green Seal, Safer Choice, ECOLOGO, GREENGUARD, EnergyStar, WaterSense and USDA Bio-preferred; products made from recycled content; water and energy efficient products.

Awards & Recognition

• Champion of Diversity Award (Lake Norman Chamber of Commerce); Top Employer (Diversity Jobs); Top Workplaces 2019 (Columbus CEO Magazine)

Environmental Metrics

ESG Focus Areas

• Ethics and Integrity
• Occupational Health & Safety
• Employment and Training & Education
• Climate Change
• Waste
• Supplier Social Assessment
• Governance

Environmental Achievements

• Saved 700,000 hours of machine hours, equivalent to more than 100 million kilowatt hours.
• Helped customers reduce consumption by approximately 1.8 million product units and reduced packaging waste by more than 300 million cubic inches.
• Recycled more than 76,000 pounds of electronic equipment in 2021.
• Refurbished and shipped 587 vending units and 521 PC units, reused 872 wooden crates, and recycled 346,360 lbs. of metal in fiscal year 2022.
• Increased the number of available EPP products in our catalog by over 900%.

Social Achievements

• Received a Top Workplaces award for our organization’s culture in both our Davidson, North Carolina, and Melville, New York, offices.
• More than 3,000 MSC associates engaged in Unity Discussions, with a 90% participation rate quarterly.
• Launched three new business resource groups (Pride, DisABLEd, and HOLA), growing membership by over 850% to more than 900 members.
• MSC associates averaged more than 17 training hours per individual in fiscal year 2022.
• Made approximately $43 million of charitable and in-kind donations to more than 50 local and national nonprofit organizations over the past five years.

Governance Achievements

• Refreshed and launched mandatory associate training on anti-bribery, anti-corruption, anti-trust, business continuity, and Code of Conduct in January 2022.
• Achieved ISO 45001:2018 certification at our Columbus, Ohio, Customer Fulfillment Center.

Climate Goals & Targets

Environmental Challenges

• Incomplete GHG emissions data, not reflecting all of MSC’s emissions across the enterprise.
• Need to further develop methodology for collecting and analyzing enterprise-wide emission data.

Mitigation Strategies

• Developing the process for collecting and analyzing MSC’s greenhouse gas emissions from its 54 facilities worldwide.
• Implementing an environmental module in compliance management program software to track waste generation, emissions, and energy usage.

Supply Chain Management

Responsible Procurement

• MSC requires suppliers to comply with the MSC Anti-Trafficking/Anti-Slavery Policy and applicable laws.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 45001:2018 (Columbus, OH CFC), ISO 9001:2015

Awards & Recognition

• Bronze rating from EcoVadis
• BB rating from MSCI in 2021
• Top Workplaces award

Environmental Metrics

ESG Focus Areas

• Waste Reduction
• Climate Change
• Ethical Supply Chain Stewardship
• People & Communities

Environmental Achievements

• Partnered with Total Waste Management provider to increase recycling and landfill diversion efforts.
• Recycled 1,455 tons of corrugated packaging at MSC CFCs.
• Recycled over 20,000 lbs of carbide since 2021.
• Achieved 100% enterprise-level data collection of Scope 1 & 2 GHG emissions.
• Reduced 32 million kWh through sustainable metalworking solutions.
• Offered over 20,000 Environmentally Preferable Products (EPP).
• Implemented a new single-stream recycling program.

Social Achievements

• Strengthened commitment to DEI with expansion of Inclusion Circles.
• Scored a 90 on the 2023 Best Places to Work Disability Equality Index.
• Eliminated high-voting Class B shares.
• Established a Supplier Diversity and Sustainability function.
• Donated over $13 million in products to charities.
• Improved maternity leave benefits.
• Partnered with Hinge Health for associate back and joint health support.
• 3,000 associates completed Allyship at Work program.
• MSC was recognized in the top 25% of participating companies for three cultural attributes: supportive managers, open-mindedness and work-life balance.

Governance Achievements

• Completed an enterprise-wide review of GHG emissions, laying the groundwork for an overall emissions reduction strategy.
• MSC’s shareholders voted to approve a transaction to eliminate the company’s dual class share structure.

Climate Goals & Targets

Environmental Challenges

• Scope 3 emissions from operations and businesses.
• Reducing waste footprint.

Mitigation Strategies

• Reviewing Scope 3 emissions with ESG council.
• Developing an ISO 14001 certified Environmental Management System (EMS) in Columbus, Ohio Customer Fulfillment Center.
• Partnering with NorthStar Recycling for waste audits and waste reduction roadmaps.
• Implementing a new single-stream recycling program.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• Supplier Diversity program

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO 45001 (Columbus, OH CFC), ISO 14001 (in progress)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Environmentally Preferable Products (EPP)

Awards & Recognition

• MSCI ESG Rating of BB
• 90 on the 2023 Best Places to Work Disability Equality Index
• Winners in multiple categories of the 2023 Best Places to Work Awards
• 50/50 Women on Boards award