Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Increased number of lawsuits related to lightning subrogation.
• Dependence on certain raw materials with volatile prices.
• Intense competition in all markets.
• Dependence on certain sales channels.
• Impact of currency volatility (Brexit).

Mitigation Strategies

• Vigorous defense of lawsuits.
• Annual purchase contracts for raw materials.
• Product development and distribution network maintenance.
• Diversification of sales channels.
• Monitoring currency fluctuations.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Social Achievements

• The factory was sanitized twice daily to minimize risk of spreading the virus. Employees exceeded expectations working double shifts six days a week to meet product demand.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic caused business slowdowns, increased costs to sanitize the factory, inefficiencies from staggered work shifts, overtime costs due to employee quarantines, and unabsorbed overhead.
• Increased commodity prices of nickel and copper.
• Potential supply chain disruptions due to reliance on one or two suppliers for raw materials and components.
• Potential legal liabilities related to product liability claims.

Mitigation Strategies

• Implemented pricing actions to offset rising material costs.
• Maintained reasonably stable margins despite COVID-19 disruptions.
• Developed alternative sourcing strategies for raw materials and components (although not explicitly stated, implied by risk factors).
• Vigorously defending against all known claims and successfully defended against one class action lawsuit.

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks

• Potential reduction in demand for natural gas piping products due to transition away from fossil fuels.

Sustainable Products & Innovation

• MediTrac® corrugated medical tubing
• DoubleTrac® double-containment piping
• DEF-Trac® piping
• TracPipe® CounterStrike® flexible gas piping
• AutoSnap® fitting
• AutoFlare® fitting

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions in 2021
• Increased commodity prices of nickel and copper in 2021
• Sporadic supply chain issues in 2021
• COVID-19 pandemic impact on business, employees, customers, suppliers, and distribution channels in 2020 and 2021
• Potential impact of transitioning away from fossil fuels
• Potential impact of Brexit on UK operations and European markets

Mitigation Strategies

• Purchased raw materials ahead of demand surge
• Implemented pricing actions to offset rising material costs
• Maintained multiple suppliers to minimize disruption
• Navigated COVID-19 crisis without government support
• Monitored the impact of the COVID-19 pandemic on its business
• No specific mitigation strategies for Brexit mentioned beyond noting that most of Omega Flex Limited's business is domestic

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks

• Potential impact of transitioning away from fossil fuels

Sustainable Products & Innovation

• MediTrac® corrugated medical tubing
• TracPipe® and CounterStrike® flexible gas piping
• DoubleTrac® double-containment piping
• AutoSnap® and AutoFlare® fittings

Environmental Metrics

Social Achievements

• The Company fosters a collaborative, inclusive, and safety-minded work environment, with a focus on ingenuity.
• We continually strive to attract a diverse workforce by partnering with local organizations to identify potential candidates to advance and strengthen our human capital management program.

Climate Goals & Targets

Environmental Challenges

• Sporadic supply chain issues in 2022.
• Higher commodity price of nickel in 2022.
• Potential loss of independent sales organizations.
• Dependence on certain sales channels for a significant portion of business.
• Potential impact of Brexit on the U.K. and European Union economies.
• Increased trade tariffs and reduced international trade.
• Potential damage or disruption to manufacturing plants.
• Dependence on certain raw materials and supplies subject to volatile price escalation.
• Potential loss of senior management.
• Susceptibility to litigation and significant legal costs or settlements.
• Inability to protect intellectual property rights.
• Potential impact of reduced demand for natural gas due to climate change initiatives.
• Potential increase in debt or restrictions on accessing funds.
• Potential impact of changes in SOFR rates and phasing out of LIBOR.
• Varying demands based on market interest rates.
• Cyclical demands.
• Seasonal or weather-related factors.
• Impact of currency volatility.
• Risk of cybersecurity incidents or technology disruptions.
• Adverse effects of the ongoing COVID-19 pandemic.
• General and macroeconomic issues such as conflicts, wars, natural disasters, infectious disease outbreaks, and terrorist acts.

Mitigation Strategies

• Implementing pricing actions to offset upward movements in material markets.
• Maintaining a fully developed sales and distribution network.
• Maintaining multiple suppliers for raw materials and components.
• Succession planning for senior executives.
• Vigorous defense against legal claims.
• Legal action to protect intellectual property rights.
• Annual purchase contracts for raw materials to limit the effects of volatile prices.
• Monitoring the impact of the COVID-19 pandemic and implementing appropriate measures.

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks

• Potential impact of reduced demand for natural gas due to climate change initiatives.

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Sporadic supply chain issues in 2023.
• Lower production causing lower absorption of factory labor and overhead costs.
• Increased volumes of competing low-price imports.
• Potential for increased litigation costs due to product liability claims.
• Potential impact of proposals to limit or eliminate the use of fossil fuels.
• Potential impact of currency volatility on international sales.

Mitigation Strategies

• Implementing pricing actions to offset upward movements in raw material markets.
• Maintaining multiple suppliers to minimize supply chain disruptions.
• Vigorously defending against product liability claims.
• Maintaining adequate sources of supply for raw materials and components through purchase commitments.
• Forming a legal entity in France in 2022 to mitigate the impacts of Brexit.
• Monitoring the viability of banking institutions and transferring cash to various institutions during times of risk.

Supply Chain Management

Responsible Procurement

• Multiple sources qualified for all major raw materials and components.

Climate-Related Risks & Opportunities

Transition Risks

• Potential impact of proposals to limit or eliminate the use of fossil fuels.

Sustainable Products & Innovation

• TracPipe®, CounterStrike®, DoubleTrac®, DEF-Trac®, MediTrac®

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• All materials used in manufacturing are either turned into a final product or recycled.
• No hazardous waste stream emitting from manufacturing facilities.
• Upgraded lighting to energy-efficient LED lighting.
• Upgraded primary production equipment to reduce electrical load.
• Redesigned testing equipment and processes to conserve helium.
• Products are made from stable non-reactive materials and designed for extended use.
• Metal parts of piping systems are recyclable.

Social Achievements

• Developed a program for injury prevention involving management, supervisors, and employees.
• Established a safety committee certified by the Commonwealth of Pennsylvania.
• Developed policies, rules, and procedures for employee safety (outlined in employee handbook).
• Conducted training for employees, including active shooter and diversity, equity, and inclusion training.
• All installers of products are required to be trained.

Governance Achievements

• Board of directors provides guidance and direction to management and oversight over non-operational programs.
• Implemented a comprehensive compliance program including a Code of Business Conduct and Ethics, and an Anti-Bribery and Trade Compliance Policy.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• DoubleTrac®, DEFTrac®, MediTrac® flexible piping systems