Climate Change Data

Mayville Engineering Company, Inc.

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

ESG Focus Areas

  • Materials Efficiency
  • Energy Management
  • Employee Health & Safety
  • Talent Acquisition & Retention
  • Data Privacy & Cybersecurity
  • Supply Chain Management
  • Community Engagement

Environmental Achievements

  • Reduced energy usage intensity by 32% since 2020
  • Reduced scrap intensity by 47% since 2020
  • Reduced water usage intensity by 36% since 2020
  • Invested in Servo Punch Electric Presses, increasing energy efficiency by more than 200%
  • Implemented processes to increase energy efficiency in powder coat systems by more than 250%
  • Invested in robotic brake presses and energy-efficient high-speed fiber optic lasers
  • Installed LED lighting, reducing energy footprint

Social Achievements

  • Added 401(K) matching and an Employee Assistance Program in 2023
  • Established a new wellness program, MEC Balance, in 2021
  • Provides on-site healthcare at 6 facilities, covering 55% of employees
  • Partners with nearly 20 high schools and technical colleges to promote careers in manufacturing
  • Provides state-approved apprenticeships in welding, metal forming, tooling, and die casting

Governance Achievements

  • Timothy L. Christen elected Chairman of the Board in July 2022
  • Jag Reddy appointed President & CEO and to the board of directors in July 2022
  • Steven L. Fisher appointed chair of the Audit Committee
  • Jennifer J. Kent appointed chair of the Compensation Committee

Climate Goals & Targets

Short-term Goals:
  • 25% reduction in energy, scrap, and water intensity by 2028

Environmental Challenges

  • Energy policy changes impacting utility rates
  • Potential environmental regulation impacts on the electrical grid
  • Maintaining a sustainable supply chain
Mitigation Strategies
  • Annual evaluation of external issues and threats
  • Regular reevaluation of supply chain to ensure minimal disruptions and adherence to human rights standards
  • Implementation of MBX to drive operational excellence and cost reductions

Supply Chain Management

Responsible Procurement
  • Quality Requirements
  • Supplier Code of Conduct

Climate-Related Risks & Opportunities

Awards & Recognition

  • Named #1 Fabricator in the U.S. by The Fabricator Magazine for the 12th straight year in June 2022
  • 9 MEC locations received FMA Safety Awards

Reporting Period: 2023

Environmental Metrics

ESG Focus Areas

  • Materials Efficiency
  • Energy Management
  • Employee Health & Safety
  • Talent Acquisition & Retention
  • Data Privacy & Cybersecurity
  • Supply Chain Management
  • Community Engagement

Environmental Achievements

  • Reduced energy usage intensity by 5% in 2023 compared to 2022.
  • Reduced scrap usage intensity by 6% in 2023 compared to 2022.
  • Reduced water usage intensity by 9% in 2023 compared to 2022.
  • Upgraded CO2 laser cutting capabilities to fiber lasers, reducing electricity consumption.
  • Upgraded to energy-efficient LED lighting across plants.
  • Expanded piping grid to deliver direct line Weld Shielding gas, improving efficiency and reducing scrap.

Social Achievements

  • Added a High Deductible Healthcare Plan Option with Health Savings Accounts in 2023.
  • Launched numerous initiatives to improve talent attraction and retention.
  • Partnered with nearly 20 high schools and technical colleges to promote careers in manufacturing.
  • Provided state-approved apprenticeships in welding, metal forming, tooling, and die casting.
  • Initiated a move to new corporate headquarters to attract talent from the greater Milwaukee area.
  • Implemented Training Within Industry (TWI) program for employee training.
  • Implemented weekly meetings to align safety training and processes.

Governance Achievements

  • Established a Supplier Code of Conduct to communicate ethical standards to suppliers.
  • Evaluates Supplier Code of Conduct and supply chain requirements regularly.
  • Implemented processes and technology to prevent unauthorized transmission of company digital data.
  • Assessed employee security awareness, achieving nearly 99% participation and scoring above industry average.

Climate Goals & Targets

Medium-term Goals:
  • Achieve a 25% reduction in energy, scrap, and water intensity by 2028

Environmental Challenges

  • Potential environmental regulation impacts on the electrical grid.
  • Maintaining a stable pipeline of skilled labor.
Mitigation Strategies
  • Annually evaluates external issues or threats such as energy policy changes impacting utility rates and potential environmental regulation impacts on the electrical grid.
  • Continuously evaluates Human Resources strategy and programs to attract and retain a committed and talented workforce.
  • Investing in development opportunities that enable the deployment of MBX.

Supply Chain Management

Responsible Procurement
  • Supplier Code of Conduct
  • Quality Requirements

Climate-Related Risks & Opportunities

Awards & Recognition

  • #1 Fabricator in the U.S. by The Fabricator Magazine for the 13th straight year in June 2023
  • FMA Safety Awards for 8 MEC locations