Climate Change Data

Zurn Elkay Water Solutions Corporation

Climate Impact & Sustainability Data (2018-2019, 2020, 2021, 2023)

Reporting Period: 2018-2019

Environmental Metrics

Total Carbon Emissions:62,727.12 tonnes CO2e (2018-2019, domestic only)
Scope 1 Emissions:50,112.61 tonnes CO2e (2018), 32,232.46 tonnes CO2e (2019, domestic only)
Scope 2 Emissions:22,614.51 tonnes CO2e (2018), 16,272.82 tonnes CO2e (2019, domestic only)
Total Energy Consumption:1,193,963.06 GJ (2018), 768,805.98 GJ (2019, domestic only)
Water Consumption:298.95 ML (2018), 248.11 ML (2019, domestic only)

ESG Focus Areas

  • Employee Safety
  • Greenhouse Gas Emissions
  • Diversity, Equity and Inclusion
  • Product Transparency
  • Supply Chain Ethics

Environmental Achievements

  • Saved over 10,685,170 single-use bottles from landfills in 2018-2019 through water bottle filling stations.
  • Implemented green office practices, including reusable cups and responsible coffee waste disposal.

Social Achievements

  • Launched the Sternberg Philanthropy Award to recognize employee community involvement.
  • Established the Elkay Family Foundation to support employees impacted by natural disasters.
  • Employees donated $250,796.10 to various charities in 2018-2019, matched by the company.

Governance Achievements

  • Established an ethics hotline and online reporting system for anonymous reporting of ethical concerns.
  • Implemented a strict non-retaliation policy for ethical concerns reporting.

Climate Goals & Targets

Long-term Goals:
  • Approach a net-zero footprint.
Medium-term Goals:
  • Establish science-based targets for greenhouse gas emissions by 2024.
  • Achieve 80% product coverage with Health Product Declarations (HPDs) within the plumbing organization by 2026.
Short-term Goals:
  • Expand supplier code of conduct coverage to 90% of Elkay purchasing dollars.
  • Inventory and analyze greenhouse gas emissions across the entire organization to establish a reliable baseline.
  • Increase percentage of diverse candidates presented to hiring managers to 25% and diverse hires to 25%.

Environmental Challenges

  • Inconsistent levels of time, resources, and effort invested in workplace safety across different locations.
  • Challenges in auditing all international suppliers repeatedly.
  • Challenges in ensuring all locations engage in the annual giving campaign and employee volunteer programs.
Mitigation Strategies
  • Exploring alternative approaches to establishing consistent safety performance across the company.
  • Prioritizing audits for significant, long-term suppliers.
  • Working to improve engagement in the annual campaign and volunteer programs across all locations.

Supply Chain Management

Supplier Audits: Periodic audits to assess risks and ensure compliance.

Responsible Procurement
  • Supplier Code of Conduct (covering labor practices, environmental standards, and safety standards).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core Option

Sustainable Products & Innovation

  • ezH2O bottle filling stations
  • Smartwell beverage dispensers

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:80,000 tCO2e (2020)
Scope 1 Emissions:27,389 tCO2e (2020)
Scope 2 Emissions:52,300 tCO2e (2020)
Renewable Energy Share:0.3% (2020)
Total Energy Consumption:948,135 GJ (2020)
Water Consumption:373,000 m³ (2020)
Waste Generated:816 metric tons of hazardous waste (2020)
Carbon Intensity:Decreased by 20% between 2018 and 2020

ESG Focus Areas

  • Environmental Stewardship
  • Health and Safety
  • Associate Investment and Inclusive Work Environment
  • Community Support

Environmental Achievements

  • Reduced greenhouse gas emissions by 22%, energy consumption by 22%, and water consumption by 34% between 2018 and 2020.
  • Recycled more than 13,700 metric tons of scrap metal.
  • Run Dry Solutions saved 163 million gallons of water globally in 2020.
  • Decreased energy usage by 862,500 kilowatts (18%) in Auburn, Ala. facility.

Social Achievements

  • Pledged $1 million from the Rexnord Foundation to support racial justice and equity initiatives.
  • Pledged $1 million in donated hygienic products to healthcare facilities to help fight COVID-19.
  • Continued manager development and internship programs.
  • Reduced Total Recordable Incident Rate (TRIR) by 43% from 2017 to 2020.
  • Increased Total Associate Engagement (TAE) scores consistently over the past several years (72% in FY20).

Governance Achievements

  • Established a Board-level ESG Committee in July 2020.
  • Developed multiple enterprise-wide ESG-related corporate policies (Diversity & Inclusion, Environmental & Sustainability, Product Safety, Supplier Diversity, Human Rights Statement).
  • Achieved 30% women directors on the board and 8/10 independent board members as of December 31, 2020.
  • 100% associate completion of Code of Business Conduct & Ethics training in 2020.

Climate Goals & Targets

Environmental Challenges

  • COVID-19 pandemic impacting supply chains and operations.
  • Increased demand for hygienic products while supply chain distribution networks slowed.
Mitigation Strategies
  • Supply chain management team worked to ensure seamless transitions of global teams and limited impacts on customers.
  • Board of Directors engaged throughout the year on critical business decisions impacting supply chain.
  • Awarded $2 million in bonuses to approximately 4,000 global associates for their efforts during the pandemic.

Supply Chain Management

Responsible Procurement
  • Supplier Code of Conduct

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, GRI

Sustainable Products & Innovation

  • Touchless restroom products
  • Run Dry Solutions

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:10163 tCO2e
Scope 1 Emissions:4866 tCO2e
Scope 2 Emissions:5297 tCO2e
Scope 3 Emissions:Not disclosed
Renewable Energy Share:2.1%
Total Energy Consumption:149213 GJ
Water Consumption:44.6 thousand cubic meters
Waste Generated:2641.5 metric tons
Carbon Intensity:11.18% GHG emissions intensity based on fiscal year sales/revenue

ESG Focus Areas

  • Environment
  • Health & Safety
  • People
  • Communities
  • Governance & Ethics

Environmental Achievements

  • Zurn Water Solutions engineered products saved 34 billion gallons of water in 2021.
  • 70% of revenues came from sustainable products in 2021.
  • 25.2% of waste from operations was recycled in 2021.
  • Paso Robles facility generated 877 MWh of electricity through a rooftop solar system.

Social Achievements

  • Increased associates’ paid time for company-sponsored volunteer events by 25%, from 16 to 20 hours annually.
  • More than 90% of the U.S. workforce participates in the Wellness Program.
  • Launched an employee-led social impact fund to support sustainability initiatives.
  • Associate Inclusion Index score of 583 in 2021, ahead of the industry average.

Governance Achievements

  • Became a signatory to the United Nations Global Compact.
  • 100% of associates trained on the Code of Business Conduct and Ethics in 2021.
  • Implemented a U.S. Supplier Diversity Program, spending approximately $5 million with diverse suppliers in 2021.

Climate Goals & Targets

Long-term Goals:
  • Report on Scope 3 emissions and establish a science-based target for GHG reduction (Scopes 1, 2, and 3) by 2023.
Medium-term Goals:
  • Reduce Scope 1 & Scope 2 GHG emissions intensity by 50% by 2030.
Short-term Goals:
  • Increase revenue from sustainable products to 75% by 2024.
  • Achieve 40 billion gallons of water saved annually through products by 2024.
  • Reduce energy consumed per U.S. dollar of operating revenue by 15% by 2024.
  • Increase employee engagement survey responses to 80% by 2024.

Environmental Challenges

  • Reducing greenhouse gas emissions.
  • Improving water consumption in facilities, especially in water-stressed regions.
  • Maintaining a sustainable and resilient supply chain.
Mitigation Strategies
  • Set a goal to reduce Scope 1 and Scope 2 GHG intensity by 50% by 2030.
  • Implemented the Zurn Environmental Management System (EMS).
  • Expanded the Supplier Quality and Development Program to assess key environmental and social performance indicators.

Supply Chain Management

Supplier Audits: Top suppliers representing 80% of global supplier spend were surveyed in 2021.

Responsible Procurement
  • Supplier Code of Conduct
  • Supplier Quality and Development Program

Climate-Related Risks & Opportunities

Physical Risks
  • Heavy rain and flooding
Transition Risks
  • Regulatory changes
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: SASB, GRI

Certifications: WaterSense

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Goal 6: Clean Water and Sanitation
  • Goal 7: Affordable and Clean Energy
  • Goal 8: Decent Work and Economic Growth
  • Goal 11: Sustainable Cities and Communities
  • Goal 12: Responsible Consumption and Production
  • Goal 13: Climate Action

The report details how Zurn's products and initiatives contribute to these goals.

Sustainable Products & Innovation

  • Hydro-X Power faucet
  • Go Blue Parts
  • VERDEdri hand dryer
  • BrightShield suite of hygienic products
  • Zurn Smart Products

Awards & Recognition

  • Newsweek’s America’s Most Responsible Companies (two years in a row)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:245,778 tCO2e/year (Scope 3)
Scope 1 Emissions:12,486 tCO2e/year
Scope 2 Emissions:10,657 tCO2e/year
Scope 3 Emissions:245,778 tCO2e/year
Renewable Energy Share:16%
Total Energy Consumption:379,767 MWh/year
Water Consumption:29,600,000 m3/year (consumed)
Waste Generated:10,758 tons/year
Carbon Intensity:15.1 MTCO2e/$M revenue (Scope 1 & 2)

ESG Focus Areas

  • Cleaner, safer water
  • Protecting and conserving water
  • Promoting sustainability in our operations and supply chain
  • Prioritizing our people, our values and our communities

Environmental Achievements

  • 12.7% total reduction in energy intensity through 2023 (compared to our 2021 baseline)
  • 27.2% total reduction in GHG intensity through 2023 (compared to our 2021 baseline)
  • 16% of electricity use was from renewable sources in 2023
  • 65.5% company waste diversion rate

Social Achievements

  • Launched Safety Observation Program to give associates more tools to improve safety in our facilities
  • 94% Total Associate Engagement Survey participation
  • 79.3% Associate Inclusion Index score, exceeding the industry average of 73%
  • 5,366 total volunteer hours completed by Zurn Elkay associates
  • $2.2M filter donation providing five years of clean drinking water to Milwaukee Public Schools
  • $7.7M cash and in-kind donations to community organizations

Governance Achievements

  • updated our Supplier Excellence Manual, which includes expectations for how to do business with Zurn Elkay
  • 5.5% of supplier spend with diverse businesses in 2023
  • 100% of associates trained on the Code of Business Conduct and Ethics in 2023
  • 40% female and minority representation on the Board of Directors in 2023

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions (target year not explicitly stated, but implied by 2030 and 2050 goals)
Medium-term Goals:
  • Source at least 25% of our electricity from renewable sources by 2030
  • Reduce Scope 1 and 2 GHG emissions intensity by 50% by 2030 (compared to our 2021 baseline)
  • Reduce NOx air emissions intensity per U.S. dollar of operating revenue by 15% by 2025 (compared to our 2022 baseline)
Short-term Goals:
  • Reduce energy consumed per U.S. dollar of operating revenue by 15% by 2024 (compared to our 2021 baseline)
  • Reduce TRIR by 10% in 2023 (compared to our 2022 baseline)

Environmental Challenges

  • Aging infrastructure that can contaminate water supplies
  • Water scarcity issues
  • Drinking water quality
  • Waste from single-use plastics and paper towels
  • Energy use
Mitigation Strategies
  • Developed a holistic greenhouse gas reduction roadmap
  • Prioritized investments in LED lighting, more efficient air compression systems, insulation
  • Ensured supply chain integrity through oversight of supplier diversity, supply chain sustainability and risk
  • Bolstered training initiatives and established a new target of 18 training hours per associate annually
  • Reinforced commitment to diversity, equity and inclusion (DEI)

Supply Chain Management

Supplier Audits: 77 audits in 2023

Responsible Procurement
  • Supplier Code of Conduct
  • Supplier Excellence Manual
  • Supplier Diversity initiatives
  • ESG and Business Continuity Survey for suppliers

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather (flooding, severe storms)
  • Wildfires
Transition Risks
  • Carbon pricing mechanisms
  • Enhanced emissions-reporting obligations
  • Increased cost of raw materials
  • Need for technological innovation
Opportunities
  • Development of energy-efficient products
  • Increased revenue from water conservation products
  • Competitive market positioning
  • New and emerging markets

Reporting Standards

Frameworks Used: Task Force on Climate-Related Financial Disclosures (TCFD), Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), United Nations Sustainable Development Goals (SDGs), CDP Climate Change and Water Security Questionnaires

Certifications: ISO 14064-3 (GHG inventory verification), ISO 22301 (BCP)

Third-party Assurance: Third-party verification for Scope 1 and 2 GHG emissions

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 6 (Clean Water and Sanitation)
  • Goal 13 (Climate Action)
  • Goal 8 (Decent Work and Economic Growth)
  • Goal 12 (Responsible Consumption and Production)
  • Goal 5 (Gender Equality)
  • Goal 10 (Reduced Inequalities)
  • Goal 15 (Life on Land)
  • Goal 11 (Sustainable Cities and Communities)
  • Goal 16 (Peace, Justice and Strong Institutions)

Initiatives contributing to these goals are described throughout the report.

Sustainable Products & Innovation

  • Filtered bottle filling stations
  • Pressure-reducing valves
  • Backflow preventers
  • Low-flow fixtures
  • Energy-efficient hand dryers
  • Sensor products
  • CuVerro copper sinks
  • Partitions with recycled content
  • PEX piping systems
  • Roof drains

Awards & Recognition

  • America’s Most Responsible Companies by Newsweek (four consecutive years)