Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Philanthropy

Environmental Achievements

• Reduced energy intensity by 20% since 2010, exceeding the 8-year goal.
• Decreased monthly electricity consumption from 2050 MWh in 2010 to 2015 MWh in 2011.
• 7% reduction in energy usage for building heating compared to 2008.
• Switched from corrugated boxes to recycled chipboard boxes, reducing material use and optimizing packaging.
• Optimized packaging techniques resulting in a 30% savings on freight costs.
• Implemented a CSR Purchasing Guideline to prioritize environmentally safe products and services from CSR-minded suppliers.
• Increased "Made in the U.S.A." purchases to reduce transportation carbon footprint.
• Created a parking lot using over 153,000 recycled green glass bottles and warm mix asphalt.
• Planted a native Illinois prairie garden.
• Prevented the removal of trees on company property by negotiating with the Illinois Department of Transportation.

Social Achievements

• Distributed a mandatory Safety Standards document to all employees.
• Installed custom-made silencers to reduce noise levels on the manufacturing floor.
• Purchased a new pad printer with an enclosed paint cup to eliminate noxious odors.
• Added indoor plants to improve air quality.
• Continued to offer annual employee health screenings.

Governance Achievements

• Became a Certified B Corporation, the first manufacturer in Illinois to do so.
• Established a CSR Purchasing Guideline.
• Established an Annual Charitable Donations Guideline.

Climate Goals & Targets

Environmental Challenges

• Rising prices and cost structures.
• Higher than expected waste-to-landfill rate (though attributed to increased sales).
• Lower than anticipated participation in annual employee health screenings.
• Temporary discontinuation of a natural air pressure equalizer (to be investigated in 2012).

Mitigation Strategies

• Maximizing efficiency in purchasing, manufacturing processes, and waste elimination.
• Discovering new ways to properly dispose of waste (scrap metal, scrap wood).
• Planning increased efforts for employee health and wellness in 2012, extending the service to temporary employees.
• Investigating the correlation between outside air temperature and oven performance in 2012 to reinstate the natural air pressure equalizer.

Supply Chain Management

Responsible Procurement

• CSR Purchasing Guideline

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• Crankcase ventilation systems
• New product lines for steel industry emissions reduction

Awards & Recognition

• Itasca Green Award
• Governor's Sustainability Award
• GOOD Company Project (nominated)

Environmental Metrics

ESG Focus Areas

• Governance
• Workers
• Customers
• Environment
• Community

Environmental Achievements

• Maintained near 90% diversion of waste from landfills
• Recaptured $4,693 across seven tracked categories through reuse
• Reduced per-capita freight cost by 2% for containers sent to SMI Belgium
• Saved over $17K due to lower natural gas prices
• Offset electricity usage in 1151 building by roughly 22% through solar energy, saving 28% on electric bill
• Achieved 74% ROI on solar investment

Social Achievements

• Increased headcount by four production workers
• Provided full-time employees with benefits including 80% health care premium coverage and 50% 401k match
• Allowed flextime for eligible employees
• Achieved zero days lost to incidents due to improved safety measures and training
• Implemented wellness initiatives including a fitness club program and exercise room
• Donated over $300,000 (1% of pre-tax sales) to charity

Governance Achievements

• Improved operations, reducing process times and environmental impact, saving $41,163 in transportation costs
• Redesigned and relocated workspaces, streamlining workflow and reducing order fulfillment time
• Increased on-time delivery performance to 98%+

Climate Goals & Targets

Environmental Challenges

• Maintaining full adherence to social and environmental policies with fluctuating business volumes and temporary workers
• Lack of a Board of Directors
• Resistance to new safety protocols from long-term employees
• Difficulties in recycling certain types of scrap materials
• Increased packaging damage due to higher shipment volume
• Increased electricity consumption despite energy reduction efforts
• Inability to host annual blood drive and other philanthropic events due to time constraints

Mitigation Strategies

• Focus on continuously giving more people a voice, improving self-directed teams, and building a culture of helpfulness
• Creating a new Board of Directors with at least one independent member
• Refining safety protocols based on employee feedback
• Seeking recycling vendors for special materials
• Reviewing packaging and shipping practices with providers
• Investigating new technologies to improve energy usage and eliminate unnecessary production steps
• Revisiting events in 2016

Supply Chain Management

Supplier Audits: 7 key suppliers audited

Responsible Procurement

• Collaborative audits with suppliers focusing on environmental and social topics

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: B Corp

Certifications: B Corp (May 2011)

Sustainable Products & Innovation

• Oil mist capturing products reducing emissions

Awards & Recognition

• Highlighted in Environmental Leader’s “2015 Insider Knowledge”, Kudos from La Repubblica

Environmental Metrics

ESG Focus Areas

• People
• Planet
• Product
• Property
• Power
• Prosperity
• Philanthropy

Environmental Achievements

• Offset 100% of carbon emissions in the U.S. by supporting wind energy and methane production at a landfill in Nebraska.
• Installed a new electric injection molder with a 60% projected reduction in energy consumption.
• Purchased opportunity chargers for forklifts, resulting in a 47% gain in charging efficiency.
• Leveraged solar power savings in building 1151.
• Reduced greenhouse gases.
• Installed VFDs to reduce electricity consumption and improve dust extraction unit lifespan.
• Recycled 814 lbs. of polyolefin.
• Diverted ~85% of waste from landfills.

Social Achievements

• Increased lowest wages to the living wage for all regular and temporary employees.
• Maintained Chicago’s minimum wage for new employees (approximately 27% higher than the national average).
• Achieved four consecutive years of zero days lost to incidents and reduced OSHA recordable incidents.
• Expanded professional development opportunities for 87 employees.
• Loaned $67,900 to full-time employees.

Governance Achievements

• Increased activity of the employee loan program.
• Held an internal tradeshow to improve inter-departmental communication and customer support.
• Installed gigantic Guiding Principle signs to remind employees of the company's foundation.
• Installed cranes to help with heavy-unit hazard prevention.

Climate Goals & Targets

Environmental Challenges

• Temporary employee training.
• Safety incidents (days of restriction).
• Shipping damage complaints.
• Lack of industry data for B Corp customer initiatives.
• Increased energy requirements due to changing product mix and in-house production.
• Securing more donated time involvement from employees for community service.

Mitigation Strategies

• Ongoing efforts to improve temporary employee training and performance.
• Safety enhancements on manufacturing floors (taped walkways, blue lights on forklifts, etc.).
• Improved packaging and shipping procedures (goal of zero complaints).
• Focus on areas where products benefit health and safety.
• Major capital investments to offset energy intensity (new 635kW solar system).
• Allowing for volunteering during work hours.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: B Lab's B Impact Assessment

Certifications: B Corp (Certified Since July 2011)

Third-party Assurance: B Lab

Environmental Metrics

ESG Focus Areas

• Governance
• Workers
• Customers
• Environment
• Community

Environmental Achievements

• Installed a 1270-panel/635kW solar system, aiming for 25% reduction in energy intensity and 100% ROI within 4-5 years.
• Offset Scope 1 and Scope 2 emissions for the second consecutive year.
• Recycled ~85% of waste from landfills for the fifth consecutive year (146,996 pounds).

Social Achievements

• Achieved a record low of one OSHA recordable incident.
• Implemented a noise reduction program and provided free hearing screenings.
• Increased living wage to $12.56/hr for unskilled employees.
• Hosted first Manufacturing Day, inviting high school students to tour facilities.
• Co-sponsored a career day with Embarc for low-income high school students.

Governance Achievements

• Created a Leadership Board as a first step towards a board of directors.
• Participated in a B Corps Diversity and Inclusion program.
• Extended employee loan program (30 loans in 2017).

Climate Goals & Targets

Environmental Challenges

• Training for temporary workers.
• Maintaining worker safety and reducing days of restriction.
• Language barrier with Spanish-speaking workers.
• Lack of publicly accessible data to substantiate customer benefits.
• Securing more donated time involvement from employees for community activities.

Mitigation Strategies

• Revising Code of Conduct to include social/environmental responsibility actions.
• Updating work area signage and communications.
• Repurposing a manufacturing plant into a fabrication facility.
• Working with industry leaders to measure customer gains.
• Allowing volunteering during work hours and launching a new internal company program (SCIP).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: B Corp

Certifications: B Corp

Third-party Assurance: B Lab

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Ultrahigh-efficiency air/oil separation units
• Dry pumping technologies

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Community

Environmental Achievements

• Offset 100% of gas usage through certified carbon credits
• Purchased wind RECs for all grid electric usage
• Purchased additional carbon credits for international container shipments
• 55% of philanthropy went to environmental causes

Social Achievements

• Maintained a USA employee base of 196 without job losses
• Increased base pay to maintain a Living Wage ($16.33)
• Implemented a single PTO bucket (sick/personal days)
• Continued ESL classes
• Offered free biometric screenings
• Established a Lifetime Achievement Award for 25+ years of service

Governance Achievements

• Maintained B Corp certification with a score of 105.4
• Implemented Tor’s One Takes internal announcements
• Loan assistance program issued 21 loans totaling $94,500

Climate Goals & Targets

Environmental Challenges

• Labor shortages and computer program issues
• Supply chain disruptions and price increases
• Difficulty finding and retaining manual labor
• Challenges in integrating new employees
• Loss of a long-term employee
• High emissions from shipping
• Need for more data on product environmental impact
• Delayed empty container returns for international shipments
• Underperforming solar panels
• Unfunctional 1MW battery for frequency regulation
• Low participation in Solberg Community Involvement Program (SCIP)

Mitigation Strategies

• Office personnel assisted in assembly
• Employees worked overtime
• Improved employee onboarding program
• Continued efforts to improve job training
• Continued efforts to improve company culture
• Voluntary offsetting of shipping emissions
• Seeking data from customers on product benefits
• Researching solutions for solar panel and battery issues
• Working to increase SCIP participation

Supply Chain Management

Responsible Procurement

• Working with suppliers to minimize VOCs

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: B Corp

Awards & Recognition

• Real Leaders Impact Award (48th out of 150)