Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Declining demand for traditional printed documents due to digital technologies.
• Highly competitive and price-sensitive printing industry.
• Consolidation among distributor customers.
• Weak lower-end domestic retail environment for apparel.
• Increased international competition in apparel due to relaxed import restrictions.
• Volatility in cotton and other input costs.
• Global economic uncertainties.

Mitigation Strategies

• Developing custom and full-color products.
• Exploring new market opportunities (envelopes, tags, folders, etc.).
• Focusing on cost management and controlling product costs.
• Strict adherence to selling price preservation in apparel.
• Developing new sales programs and channels in apparel.
• Improving manufacturing efficiencies in apparel.
• Managing exposure to cotton price fluctuations through negotiation.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Culture
• Financial Integrity
• Environmental Responsibility (implied)

Environmental Achievements

• Many customers pick up their jobs at our local and regional locations which lessens the freight cost and impact on the environment.

Social Achievements

• We give our employees and our managers the tools to effectively quote and produce our products in an accurate and timely process.
• We deliver a social commitment to our managers, employees and locations to remain intact as long they are contributing to shareholder returns.
• We are often told by vendors we are one of the few true “partnerships” they have.

Governance Achievements

• Our practice of keeping a low but fair multiple has allowed us to minimize the creation of intangibles for customer list, trade name and goodwill.
• We stand on our numbers as earned. If we are not happy with them, we move to improve them quickly. But we do not want to fall victim to the practice of “making the numbers”.

Climate Goals & Targets

Environmental Challenges

• Paper industry’s peaks and valleys of supply
• Aging workforce requiring replacement and training
• Freight and logistics staffing issues
• Succession planning challenges in potential acquisition targets
• Integrity breakdowns, shareholder value disintegration, and lack of respect from CEOs in other companies (used as examples of poor culture)
• Controlling the amount of intangibles generated through acquisitions
• Declining demand for printed documents due to digital technologies
• Competition from office supply superstores
• Technological improvements reducing competitive advantage
• Potential labor disputes
• Limited number of raw material suppliers
• Intense competition and potential below-cost pricing by competitors
• Environmental regulations
• Taxation related risks
• Customer non-payment
• Significant freight and transportation costs
• Dependence on key personnel
• Potential for ineffective internal controls
• System failures
• Data breaches
• Increased cost of employee benefits

Mitigation Strategies

• Acquisitions of companies with diverse labor and geographic dispersion
• Decentralized management approach
• Focus on operational culture and long-term strategies
• Conservative accounting practices
• Development of custom and full-color products
• Maintaining strong relationships with distributors
• Focus on quality service and products
• Compliance with environmental regulations
• Monitoring credit risk and maintaining allowance for doubtful receivables
• Managing transportation costs
• Employment agreements with key personnel
• Adequate internal control procedures
• Data security measures
• Cost control measures for employee benefits

Supply Chain Management

Responsible Procurement

• Long-term contracts with major paper supplier
• Focus on partnerships with vendors

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Social Responsibility
• Ethical Business Conduct

Environmental Achievements

• Recycled 27.7 million pounds of paper, 510,000 pounds of plastic and 628,000 pounds of cardboard in 2020.
• Used soy-based inks in approximately 80% of products.
• Used environmentally friendly cleaning agents.
• Implemented energy-efficient LED lighting in several locations.
• Reduced transportation costs due to geographical dispersion of facilities.

Social Achievements

• Maintained a safe and clean work environment.
• Followed CDC protocols for maintaining an open office during the pandemic.
• Supported local non-profit organizations, educational institutions and youth sport teams.
• Promoted a cooperative and productive work environment by supporting the cultural and ethnic diversity of its workforce.

Governance Achievements

• All Ennis employees must read, agree with, and sign a Code of Conduct and Ethics policy at least annually.
• Company strictly monitors safety issues in all facilities.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on sales volume and earnings.
• Transformation of product portfolio due to digital technologies.
• Production capacity and price competition.
• Consolidation of customers.
• Increased competition from office supply superstores.

Mitigation Strategies

• Maintained strong liquidity position.
• Closely monitored and managed receivables and inventories.
• Adjusted cost structure in response to sales impact of COVID-19.
• Continued to develop custom and full-color products.
• Focused on managing and controlling product costs.
• Sought new market opportunities and niches through acquisitions.

Supply Chain Management

Responsible Procurement

• Primary paper supplier is SFI, FSC and PEFC certified.

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Human Capital
• Social Responsibility

Environmental Achievements

• Recycled 23.1 million pounds of paper and 2.2 million pounds of cardboard and cores in 2023.
• Use of soy-based inks and environmentally friendly cleaning agents.
• Energy audits resulting in more efficient LED lighting.
• Newer digital technology reducing energy use.
• Geographical dispersion of facilities reducing transportation costs and emissions.
• Primary paper supplier is SFI, FSC, and PEFC certified.

Social Achievements

• Promotes a cooperative and productive work environment by supporting the cultural and ethnic diversity of its workforce.
• Complies with applicable safety and health regulations and appropriate practices.
• Monthly facility reviews to prevent accidents/injuries.
• Annual audits of compliance with mandated OSHA safety programs.
• Code of Conduct and Ethics policy signed annually by all management.
• Support for local non-profit organizations, educational institutions, and youth sports teams.

Governance Achievements

• No information explicitly provided in the report.

Climate Goals & Targets

Environmental Challenges

• Inflation in materials and labor.
• Tight paper supply market.
• Escalating freight costs.
• Post-COVID business environment.
• High inventory levels.
• Ransomware attack.
• Decreasing demand for traditional product lines.
• Competition from office supply superstores.
• Potential labor disputes and shortages.
• Environmental regulations.
• Taxation related risks.
• Customer credit risk.
• Significant freight and transportation costs.
• Risk of natural disasters and other unexpected events.
• Cybersecurity risks.
• Increased cost of employee benefits.

Mitigation Strategies

• Disciplined cost management and pricing strategies.
• Developing custom and full-color products.
• Working closely with domestic suppliers to reduce procurement costs.
• Reducing and leveraging fixed costs.
• Acquisitions to offset revenue declines.
• Focus on serving customers first during ransomware attack.
• Improving IT and network infrastructure.
• Implementing various new controls to strengthen cybersecurity.
• Various cost control measures in place for employee health benefits.

Supply Chain Management

Responsible Procurement

• Primary paper supplier is SFI, FSC, and PEFC certified.

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Social Responsibility
• Ethical Business Conduct

Environmental Achievements

• Recycled 20.9 million pounds of paper and 1.7 million pounds of cardboard and cores in 2024.
• Use of soy-based inks and environmentally friendly cleaning agents.
• Energy audits resulting in more efficient LED lighting.
• Implementation of newer digital technology reducing energy use.
• Reduced transportation costs due to geographically dispersed facilities and partnerships with efficient shipping companies.
• Primary paper supplier is SFI, FSC, and PEFC certified.

Social Achievements

• Promotes a cooperative and productive work environment by supporting the cultural and ethnic diversity of its workforce.
• Committed to providing equal employment opportunity to all qualified employees and applicants.
• Complies with applicable safety and health regulations and appropriate practices.
• Monthly facility reviews to prevent accidents/injuries.
• Annual audits of compliance with mandated OSHA safety programs.
• Supports local non-profit organizations, educational institutions, and youth sports teams.

Governance Achievements

• All Ennis management must read, agree with, and sign a Code of Conduct and Ethics policy at least annually.
• Board of Directors, Audit Committee, and senior management oversee risk management and cybersecurity.

Climate Goals & Targets

Environmental Challenges

• Softening of the market due to excess inventory and destocking by customers.
• Elevated price of paper driving customers to electronic solutions.
• Loss of sales due to IRS decision to no longer offer printed tax forms.
• Backlog decline from highs of 2022 and 2023.
• Upward pressure on wages.
• Intense competition and competitive pricing.
• Consolidation of customers and distributors.
• Risk of non-payment by customers.
• Significant freight and transportation costs.
• Potential for natural disasters, catastrophes, pandemics, or other unexpected events.
• Cybersecurity risks.
• Increases in the cost of employee benefits.

Mitigation Strategies

• Refocused attention on fundamental operating practices (inventory costs, labor costs, pricing accuracy).
• Acquisition of less threatened product lines.
• Maintaining a strong financial position with cash and short-term investments and no debt.
• Strategic reduction of inventory to improve cash flow.
• Repurchase of common stock.
• Improving operational efficiencies and pricing adjustments.
• Implementing ERP systems in recent acquisitions.
• Maintaining a culture of promoting workplace safety.
• Improving Information Technology General Controls.

Supply Chain Management

Responsible Procurement

• Long-term contracts with paper suppliers meeting stringent quality and on-time delivery standards.
• Primary paper supplier is SFI, FSC, and PEFC certified.

Climate-Related Risks & Opportunities