Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Net Carbon Neutral by 2045

Social Achievements

• Launched a women’s mentoring programme with 18 employees in the first cohort.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruption and customer order pattern volatility due to the ongoing COVID pandemic.
• Ballistic protection contract delays.
• First article testing failures for legacy DLA ESAPI and next-generation VTP ESAPI body armor products.
• Delays in achieving final product approval for the DLA ESAPI product.

Mitigation Strategies

• Orderly wind-down of the body and flat armor business over the next two years.
• Actively working to mitigate supply chain disruptions and customer order pattern volatility.
• Actions to address overheads as part of the body armor exit.
• Accelerated management and process integration between Ceradyne and Avon Protection to improve engineering systems and processes.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate Change
• Supply Chain
• Customer Engagement
• Employee and Community Engagement

Environmental Achievements

• Wound down the Armour business, significantly lowering scope 1 and 2 emissions.
• Established net-zero teams to identify and implement emission reduction opportunities.
• Implemented purchase of low-emission electricity where viable.
• Implemented quarterly Kaizens at each site to drive efficiency.
• Cadillac facility certified to ISO 14001.

Social Achievements

• Launched a mentoring program accessible to all employees.
• Approved a significant annual pay adjustment.
• Contributed $124,706 to charities and good causes.
• Continued to support the Teams Forces Foundation.
• Created a menopause-friendly workplace.
• Launched annual Code of Conduct training.
• Launched mandatory cybersecurity training campaign.

Governance Achievements

• Sustainability Steering Committee meetings dedicated to developing the sustainability agenda.
• Board agreement on sustainability objectives and targets.
• Integrated sustainability approach through STAR strategy.
• Launched annual Code of Conduct training.
• Implemented systems to advocate a zero-tolerance approach to bribery and corruption.
• Retained JOSCAR accreditation.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to climate events.
• Data limitations in scope 3 emissions reporting.
• Meeting stakeholder expectations regarding climate-related issues.
• Transitioning to low-carbon technologies.
• Changing customer requirements.
• Potential cost increases associated with GHG emitting fuels and decarbonization.

Mitigation Strategies

• Alternative sourcing strategies for raw materials.
• Enhanced supply chain screening and data collection for scope 3 emissions.
• Monitoring emerging policy and regulations, utilizing external experts.
• Establishing cross-functional net-zero teams to identify emission reduction opportunities.
• Close collaboration with customers to understand future requirements.
• Setting targets to reduce emissions and encourage resource efficiency.
• Implementing quarterly Kaizen activities to drive efficiency.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Established supplier Code of Conduct.
• JOSCAR membership.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (heatwaves, fires, high winds, flooding)
• Water stress
• Earthquakes

Transition Risks

• Carbon pricing and taxation
• Regulation and policy burden
• Shift to low-carbon technologies
• Changing customer requirements

Opportunities

• Increased demand for protective equipment due to natural hazards
• Resource efficiency and cost savings from emission reduction

Reporting Standards

Frameworks Used: TCFD, Streamlined Energy and Carbon Reporting

Certifications: ISO 14001 (three of five manufacturing sites), ISO 9001:2015 (all five manufacturing sites), JOSCAR

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 12 (Responsible Consumption and Production)

Work to improve operational efficiencies and reduce non-recyclable materials in packaging.

Sustainable Products & Innovation

• FM50 and C50 respirators
• Upgraded ST54 SCBA

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Supply Chain Sustainability
• Customer Engagement
• Employee Engagement and Community
• Innovation

Environmental Achievements

• Avoided 180 metric tonnes of CO2 annually at Cadillac facility through LED lighting, equivalent to removing 39 cars off the road
• Saved 254,583 kWh annually at Cadillac facility through LED lighting, generating $28k of cost savings

Social Achievements

• 20% increase in the right first-time rate at Melksham facility, reducing scrap and potentially saving £220k yearly
• Launched a premium freight approval request form to encourage more economic and environmentally friendly transport
• Established strategic freight vendors to enhance visibility and minimize unnecessary journeys
• Unveiled new vision, mission, and values based on employee feedback, aiming to improve employee engagement
• Held a 'Get #FIERCE' leadership event to champion new vision, mission, and values

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Reducing reliance on premium, higher-cost, and carbon-intensive freight methods
• Improving employee engagement and creating a common purpose

Mitigation Strategies

• Standardised global freight policies and strengthened collaboration with carriers
• Implemented quarterly reviews and enhanced data collection for freight management
• Unveiled new vision, mission, and values based on employee feedback
• Held a 'Get #FIERCE' leadership event to champion new vision, mission, and values

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Enhanced criteria for supplier review

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Next generation M61 filters
• New underwater full-face mask

Awards & Recognition

• Not disclosed