Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Occasional governmental proceedings and orders pertaining to waste disposal, air emissions, and water discharges into the environment.

Mitigation Strategies

• The Company has programs in place that monitor compliance with various environmental regulations.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Workplace Safety

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Government policies and firearms legislation changes
• Litigation
• Decreased demand for products
• Compliance with workplace safety and environmental regulations
• Business disruptions at manufacturing facilities
• Price increases for raw materials
• Transition to a new ERP system
• Healthcare legislation

Mitigation Strategies

• Holding necessary licenses under federal laws
• Monitoring compliance with environmental regulations
• Adequate raw materials inventory
• Transitioning to a new ERP system (completed in 2012)
• Self-insuring medical benefits with stop-loss insurance

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: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Decreased overall consumer demand in the first quarter of 2017 due to stronger-than-normal demand during most of 2016, likely bolstered by the political campaigns for the November 2016 elections.
• Decreased overall retailer demand in the first quarter of 2017 as some retailers committed inventory dollars to certain product categories such as modern sporting rifles in the third and fourth quarters of 2016 in advance of the November elections.
• Occasional governmental proceedings and orders pertaining to workplace safety, firearms serial number tracking and control, waste disposal, air emissions and water discharges into the environment.

Mitigation Strategies

• The Company believes that it is generally in compliance with applicable Bureau of Alcohol, Tobacco, Firearms & Explosives, environmental, and safety regulations and the outcome of any proceedings or orders will not have a material adverse effect on the financial position or results of operations of the Company.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Limited supply of raw materials in the marketplace, causing purchase prices to vary and potentially interrupting manufacturing operations.
• Potential impact of tariffs on raw material prices.
• Occasional governmental proceedings and orders pertaining to workplace safety, firearms serial number tracking and control, waste disposal, air emissions and water discharges into the environment.

Mitigation Strategies

• Company believes it has adequate quantities of raw materials in inventory or on order.
• Self-insurance for product liability, workers’ compensation, medical, and other insurance.
• General compliance with applicable regulations.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Workplace safety
• Environmental compliance
• Employee well-being
• Ethical business conduct

Environmental Achievements

• Programs in place that monitor compliance with various environmental regulations; generally in compliance with applicable environmental regulations

Social Achievements

• Is an equal opportunity employer; maintains a safe, responsible, and preferred workplace; provides all hourly employees with additional COVID-19 PTO; encourages employees to work remotely; implements social distancing; provides additional cleaning, sanitizing, improved ventilation and other health and safety processes; provides all employees with multiple facemask coverings and other personal protective equipment; surveys employees annually to assess and improve employee retention and engagement

Governance Achievements

• Committed to conducting business in conformance with the highest ethical standards and in compliance with all relevant legal and regulatory requirements; has active “Code of Business Conduct and Ethics” and “Corporate Compliance Program”

Climate Goals & Targets

Environmental Challenges

• Changes in government policies and firearms legislation; litigation; reliance upon relationships with financial institutions; insufficient insurance; decrease in demand for Company products; financial health of independent distributors; compliance with various laws and regulations; misconduct of employees or contractors; product quality and performance; business disruptions at manufacturing facilities; reliance on information and communications systems; lack of available raw materials; integration of Marlin branded firearms; retention of key management; COVID-19 pandemic

Mitigation Strategies

• Proactive measures to mitigate the impact of COVID-19; maintains credit insurance on most of its significant customers; self-insures a significant amount of its product liability, workers’ compensation, medical, and other insurance; reviews distributors’ financial statements; maintains a safe, responsible, and preferred workplace; has programs in place that monitor compliance with various environmental regulations

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Governance
• Environmental
• Social

Environmental Achievements

• Upgraded lighting in New Hampshire and Arizona saved over 2 million kWh in energy consumption since 2020.
• Over 20 million pounds of steel recycled since 2021.
• Over 2 million pounds of metal internally reused through re-melt since 2021.
• Water conservation project in New Hampshire saved over 48,000 gallons of water per day since 2017.
• Reduced coolant waste shipments by over 200,000 gallons since 2021 through ultrafiltration and recycling.
• Reusing expended brass ammunition shells eliminated the need to recycle them as a raw commodity.

Social Achievements

• Ruger firearms sales contributed almost $250 million in Federal Excise Tax since 2018, supporting the Pittman-Robertson Wildlife Restoration Program.

Governance Achievements

• Strong oversight by a diverse Board of Directors with strong attendance records and engagement with management.
• Robust corporate compliance program empowering employees to report legal and compliance concerns.
• Shareholder engagement prior to the 2022 Annual Meeting with stockholders representing 55.5% of outstanding shares.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Marketing and Advertising Practices
• Corporate Social Responsibility (CSR)

Social Achievements

• Updated Investor Relations section of website with CSR pieces, including one describing advertising and marketing practices and strategy.

Governance Achievements

• Risk Oversight Committee monitors enterprise risks, including those related to advertising and marketing practices.

Climate Goals & Targets

Environmental Challenges

• Concerns raised by CommonSpirit Health and other organizations regarding Ruger's advertising and marketing practices.

Mitigation Strategies

• Thorough vetting of advertisements before release.
• Provided a year's worth of advertisements to Proponents for review.
• Published an overview of its Marketing and Advertising practices on its Investor Relations website.
• Published a CSR report with additional details on its advertising and marketing practices.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Workplace safety
• Environmental compliance
• Ethical business conduct

Environmental Achievements

• Programs in place that monitor compliance with various environmental regulations; generally in compliance with applicable environmental regulations

Social Achievements

• Is an equal opportunity employer; Ruger University for employee development; maintains a safe, responsible, and preferred workplace; annual employee surveys to assess and improve retention and engagement

Governance Achievements

• Code of Business Conduct and Ethics; Corporate Compliance Program; Board of Directors oversight of risk management, including cybersecurity

Climate Goals & Targets

Environmental Challenges

• Governmental proceedings and orders pertaining to waste disposal, air emissions, and water discharges; potential for more stringent regulations; lawsuits related to product liability, municipal litigation, negligence, and unfair trade practices; cybersecurity threats; labor market competition; availability of raw materials and component parts; transportation disruptions

Mitigation Strategies

• Programs to monitor environmental compliance; proactive steps to promote employee health and safety; maintains insurance coverage; credit insurance for distributors; self-insurance for product liability, workers’ compensation, etc.; processes for assessing, identifying, and managing cybersecurity risks; Information Security Program

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Governance
• Compliance

Governance Achievements

• Strict adherence to ATF regulations and record-keeping requirements.
• Cooperation with law enforcement to deter illegal straw purchases.
• Support for FixNICS campaign to improve NICS database completeness.

Climate Goals & Targets

Environmental Challenges

• Incomplete NICS databases leading to potential loopholes in background checks.
• Illegal straw purchasing.

Mitigation Strategies

• Partnership with ATF and Department of Justice to educate retailers and raise public awareness against straw purchasing.
• Support for FixNICS campaign to improve NICS database completeness.

Supply Chain Management

Climate-Related Risks & Opportunities