2023 Jacuzzi Group® Sustainability Report

2023 SUSTAINABILITY REPORT

CEO LETTER

DEAR JACUZZI GROUP STAKEHOLDERS,

IAMPROUD to announce the publication of Jacuzzi’s 2023

Sustainability Report. As I reflect on another successful year, I cannot help but draw parallels between this organization’s rich history of innovation and its present efforts to operate under the highest standards of sustainable performance.

Jacuzzi Group’s driving values remain similar to those expressed by Candido Jacuzzi when he patented the first hydrotherapy pump in 1952. What started as a solution for Candido’s son’s rheumatoid arthritis has now become a wellness resource available to consumers across the globe. While the times today are much different than they were at Jacuzzi’s inception, the organization’s focus on sustainability has not wavered, and that is shown throughout its products, processes, and performance.

Detailed within this report is an overview of Jacuzzi Group’s sustainability program and the core values from which it was founded. Moving forward, Jacuzzi will continue to incorporate sustainability initiatives into its operations to support a better and safer tomorrow for its stakeholders, and to set an example for other companies to incorporate conscientious decision-making into their operations.

In the interim, Jacuzzi remains committed to operating with sustainability at the forefront of its business and will continue to push the boundaries of its industry forward by incorporating best practices into its global operations.

Thank you for your continued support,

Dave Jackson Chief Executive Officer, Jacuzzi Group

OUR APPROACH

ABOUT JACUZZI GROUP

Jacuzzi Group (the Company, the Organization, the Business, Jacuzzi) is a global leader in the manufacturing of hot tubs, baths, swim spas, and spa accessories. With operations located in the United States, Canada, Mexico, Italy, the United Kingdom, France, Brazil, Chile, New Zealand and Australia, Jacuzzi has over 65 years of experience delivering innovative wellness products to its consumers. Jacuzzi Group’s robust catalog of products is available globally, with its primary customers being specialty, big-box, and internet retailers. The Company also sells products directly to consumers, builders, plumbers, and installation service providers.

As Jacuzzi Group continues to set itself apart as an innovator within the consumer durables industry, it becomes increasingly important that the Company regularly outlines its commitment to operating with sustainability at the forefront of its decision-making. In support of this commitment, Jacuzzi Group has aligned its global operations with external regulatory agencies that support the development and implementation of sustainable business practices.

The partnerships Jacuzzi has formed with global regulatory agencies has driven the Business to become an annual signatory of the United Nations Global Compact’s Communication on Progress, align its sustainability program with the United Nations Sustainable Development Goals (SDGs), and set quantifiable long-term sustainability targets via the Science-Based Target Institute (SBTi).

TORONTO, CAN

Spa and Swimspa Manufacturing

CHINO HILLS, CA Innovation/Logistics

TIJUANA, MX

Spa Manufacturing

VALVASONE, IT

Spa, Tub & Shower Manufacturing

ROSELLE, IL

Shower Manufacturing

VALDOSTA, GA

Bath/Shower Manufacturing

LAKE MARY, FL

Spa Manufacturing

SÃO PAULO, BR

Spa & Tub Manufacturing

SANTIAGO, CL

Spa Manufacturing

JACUZZI QUICK FACTS

MISSION Jacuzzi Group's mission is to inspire joy and well-being through innovative wellness products.

HEADQUARTERS Irvine, California

EMPLOYEES 2,614

PRIMARY BRANDS

AUSTRALIA / NEW ZEALAND Operations

ASIA

Outsourced Manufacturing

OUR APPROACH

MATERIALITY AND STAKEHOLDER ENGAGEMENT

The input Jacuzzi Group receives from its stakeholders plays a vital role in assessing what topics are viewed as most material to its business. Jacuzzi’s stakeholders, which include its employees, investors, dealers, suppliers, NGOs, policymakers, customers, and industry peers, among many others, play a key role in its robust shareholder engagement program that relies on consistent and transparent communication to drive positive change across the Organization. The Company recognizes that there is a responsibility associated with stakeholder engagement and has developed several processes designed to support the advancing needs of these groups.

In 2023, Jacuzzi Group’s internal approach to stakeholder engagement involved working closely with its ownership team to establish more clarity around the sustainability topics that are most frequently asked by interested investors. Jacuzzi’s ownership group regularly communicates with investors to update them on

SUSTAINABILITY PROGRAM PILLARS

ENVIRONMENT

SOCIAL

GOVERNANCE

Jacuzzi’s sustainability performance, and the Company’s executive leadership team works closely with this ownership group to incorporate investor feedback into new sustainability goals and targets. It is through these lines of communication that Jacuzzi works closely with its stakeholders to implement relevant feedback and align on materiality.

Externally, Jacuzzi’s strategy of continuous communication with its stakeholders has allowed the Organization to relay product feedback from dealers and end-user customers. The Company regularly requests feedback from its dealers and consumers, allowing its cross functional team of employees from Product Marketing, Operations, Engineering, Legal, and Quality to take immediate action upon any outlined concerns. These teams meet regularly to review all external feedback and to identify and implement solutions that satisfy customers’ unmet needs.

In addition to Jacuzzi’s work to support its ownership group and consumers, another essential element of stakeholder engagement at Jacuzzi focuses on its internal

WE WILL PROTECT THE ENVIRONMENT ON WHICH OUR WELL-BEING RELIES.

• Climate Change

• Materials Sourcing

• Waste

• Water

WE WILL ENSURE PEOPLE’S SAFETY AND SECURITY AND IMPROVE THEIR WELL-BEING.

• Consumer Wellness

• Employee Health, Safety, and Well-Being

• Product Safety

• Workforce Engagement & Development

WE WILL LIVE OUR CORE VALUES OF INTEGRITY, RESPECT, AND OWNERSHIP.

• Data Privacy and Security

• Ethics

• Industry Stewardship

team members. The Company recognizes the importance of a united and aligned workforce and has developed engagement methods to ensure its teams are aware of the Company’s most relevant changes and updates. Team member engagement is fostered through regular town halls that review the Company’s operations and performance at a high level. During these meetings, Jacuzzi’s executive team shares updates about the Business and relays relevant information to employees across the value chain. Global Town Hall meetings provide updates to the Company and outline the ways that the leadership team incorporates substantial changes into the Business.

ABOUT THIS REPORT

Jacuzzi Group’s 2023 Sustainability Report is prepared in accordance with the Global Reporting Initiative (GRI) — Core Option. Included within this document is a detailed overview of Jacuzzi Group’s approach to sustainable business practices including external affiliations, long- and short-term objectives, and strategies to manage the industry’s most relevant areas of environmental, social, and governance risk.

The scope of this report includes all manufacturing facilities and large warehouses that exist under direct operational control of Jacuzzi Group and its subsidiaries (100% of Jacuzzi’s total operations). All Scope 1 and Scope 2 GHG emissions data found within this report has been externally verified by an independent third-party agency tasked to assure that the Company’s greenhouse gas data gets reported accurately.

All financial information included within this report is notated in U.S. Dollars unless otherwise specified. This report contains forward-looking statements that are not meant to be a guarantee of future performance or results as many of these statements involve risks, uncertainties, and assumptions that could lead to revised metrics. Company efforts may vary slightly from those outlined in forward-looking statements due to unforeseen conditions.

SUSTAINABLE DEVELOPMENT GOALS

Jacuzzi Group supports the United Nations Sustainable Development Goals (SDGs), a collaborative effort that drives companies to reach a high level of sustainable social, economic, and environmental development by 2030. The seventeen goals address critical targets tied to climate change, natural resource management, inequality, poverty, and justice. Jacuzzi Group has chosen to focus its efforts on five goals that have been deemed to have the most material impact on its global operations and the products they create. More detailed information about progress and contributions toward these specific Sustainable Development Goals is included below.

SUSTAINABLE DEVELOPMENT GOAL AND RELEVANT TARGETS

Goal 6: Ensure availability and sustainable management of water and sanitation for all.

Target 6.4: By 2030, substantially increase water-use efficiency across all operations and ensure sustainable withdrawals and supply of freshwater to address water scarcity and substantially reduce the number of people suffering from water scarcity.

Goal 8: Promote sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.

Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including young people and persons with disabilities, and equal pay for work of equal value.

Target 8.7: Eradicate forced labor, end modern slavery and human trafficking, and secure the prohibition and elimination of the worst forms of child labor, including the recruitment and use of child soldiers, and by 2025, labor in all forms.

Target 8.8: Protect employee labor rights and promote safe and secure working environments for all workers, including migrant workers, and those with precarious employment.

MATERIAL TOPIC(S) JACUZZI’S GOALS & EFFORTS

Goal: Decrease global water withdrawal through the implementation of more efficient water usage management practices.

Effort: Installed low-flow toilets and water-efficient fixtures such as sinks with automatic shut-off sensors across manufacturing facilities and large warehouses.

Effort: Installed efficient, closed-circuit water towers that reduce water consumption at facilities with high water usage.

Goal: Reduce the amount of water usage for landscaping at facilities that operate in areas with high water stress.

Effort: Reduced watering frequency at Southern California operations center resulting in a 16% reduction.

Goal: Maintain compliance with all local regulations, conduct regular and detailed safety audits, capitalize and on opportunities to align with industry standards, outline ethical standards for stakeholders.

& Well-being

Effort: Updated Code of Business Conduct and Ethics and Employee Handbook. Distributed both to all global employees in 2022 and 2023.

Effort: Implemented global ethics training in 2021, followed by a compliance awareness survey in 2022, and an employee engagement and feedback survey in 2023.

Effort: Posted signage of updated whistleblower system in every global facility to ensure that employees feel empowered to report instances of non-compliance with legal requirements or core values.

Effort: Distributed upgraded PPE (Personal protective equipment) to JBRX installation teams and operations with high injury rates.

Goal: Attract and retain more female employees in the manufacturing industry through updating job descriptions to ensure they contain inclusive language.

Effort: Updated job descriptions to be more inclusive of a wide range of diverse applicants, including more females.

SUSTAINABLE DEVELOPMENT GOAL AND RELEVANT TARGETS

Goal 12: Ensure sustainable consumption and production patterns.

Target 12.2: By 2030, achieve sustainable management and efficient use of natural resources.

Target 12.5: By 2030, substantially reduce waste generation through prevention, reduction, recycling, and reuse.

Goal 13: Take urgent action to combat climate change and its impacts.

Target 13.1: Strengthen resilience and adaptive capacity to climaterelated hazards and natural disasters in all countries.

Target 13.2: Integrate climate change measures into policies, strategies and planning.

Target 13.3: Improve education, awareness-raising and human and institutional capacity on climate change mitigation, adaptation, impact reduction and early warning.

Goal 17: Strengthen the means of implementation and revitalize the global partnership for sustainable development.

Target 17.17: Encourage and promote effective public, public-private and civil society partnerships, building on the experience and resourcing strategies of partnerships.

MATERIAL TOPIC(S) OUR GOALS & EFFORTS

Goal: Increase the amount of recycled content in manufacturing and decrease the overall amount of waste produced annually.

Waste Materials Sourcing

Climate Change Industry Stewardship

Effort: Developed partnerships with recyclers to pick up reusable materials in leu of sending them to disposal.

Goal: Implement a comprehensive global system for capturing material inputs in every product, including packaging, to achieve full material transparency by 2025.

Effort: Developed a streamlined process to account for all waste across our global operations; conducted waste audits at manufacturing facilities in 2023.

Goal: Offset 100% of Scope 1 and 2 annual carbon emissions.

Effort: All Scopes 1 and 2 GHG (Greenhouse Gas) emissions offset for calendar years 2021, 2022, and 2023.

Goal: Develop Science-Based Targets with the Science-Based Target Initiative.

Effort: Set approved science-based targets to reduce Scope 1 and 2 emissions, Scope 3 Use of Sold Products emissions, and a supplier sustainability target.

Goal: Improve customers’ ability to manage the energy usage of their spa through the development of a carbon footprint section within the SmartTub application.

Effort: Created a carbon footprint section within the Smartub application that allows mobile users to view their spas’ energy consumption in comparison to other local users.

Goal: Maintain status as an active member and participant in the United Nations Global Compact, the world’s largest corporate sustainability initiative.

Effort: Certified as an active UNGC signatory in 2021, 2022, and 2023.

Industry Stewardship

Goal: Improve standing with key industry groups that support sustainable development in product manufacturing organizations.

Effort: By 2025, 50% of spa models that are in the California Energy Commission (CEC) database will surpass the 2021 CEC requirements by at least 20%.

ENVIRONMENT

CLIMATE CHANGE

OVERVIEW

As a manufacturer of consumer durables, Jacuzzi Group recognizes the risks climate change presents to its value chain and has established a detailed carbon reduction roadmap to minimize its impact. Jacuzzi’s carbon reduction strategy is founded on the understanding that its operations and the products it creates have an impact on the environment. This knowledge drives the Company to incorporate sustainable innovations into its products to limit the negative effects of climate change for its consumers, business and the world at large.

Beyond Jacuzzi’s work to incorporate sustainable solutions into its product lines, the Organization has also aligned its manufacturing operations with best practices developed by internationally recognized institutions such as ISO and B-Corporation. An example of Jacuzzi’s partnerships with such organizations is its commitment to reaching longterm carbon emissions reduction targets approved by the Science-Based Targets Initiative (SBTi). These goals, which include Scope 1, 2, and 3, GHG emissions reductions as well as supplier engagement targets, outline the Company’s areas of sustainability focus for the coming years.

APPROVED SCIENCE-BASED TARGETS THROUGH SBTI

• Jacuzzi Group commits to reduce its absolute Scope 1 and 2 GHG emissions by 25% by 2031 from a base year of 2021.

• Jacuzzi Group commits to reduce its Scope 3 emissions from “Purchased Goods and Services” and “Use of Sold Products” by 20% per unit by 2031 from a base year of 2021.

• Jacuzzi Group commits that 50% of its suppliers, by spend, will set Science-Based Targets by 2027.

UNDERSTANDING AND COMPARING GHG EMISSIONS

Many of the carbon emissions reduction projects completed by Jacuzzi in 2023 were identified by its newly established Executive Sustainability Steering Committee (steering committee). This committee, created in 2022, consists of Jacuzzi’s Chief Executive Officer, Chief Financial Officer, Chief Legal Officer, and other members of senior leadership. The Executive Sustainability Steering Committee meets regularly to discuss long-term climate change strategies and to estimate the impact of proposed initiatives related to the progression of its SBTi targets. Plans developed at the steering committee level are then operationalized via Jacuzzi Group’s ESG (Environmental, Social, and Governance) team who meet quarterly with each manufacturing facility and large warehouse. As changes are made to products and operations, the Company regularly meets with its ownership group to communicate progress and to strategize potential improvements.

As the Organization enters its third year of Scopes 1,2, and 3 emissions reporting, Jacuzzi uses year-over-year performance comparisons to evaluate the impact of its emissions reduction strategy and to identify locations where additional sustainability support is needed. These comparisons are pivotal to Jacuzzi’s process of setting accurate and reachable sustainability targets across its facilities. The scope of Jacuzzi’s greenhouse gas (GHG) inventory reporting has grown each year, and it is estimated that the current scope of the GHG inventory outlined within this report represents approximately 95% of Jacuzzi’s total business. As the Company continues to

strengthen its reporting process, the scope of its reporting will increase until it reaches 100% of Jacuzzi operations. For the second year in a row, Jacuzzi’s operations were externally verified by a third-party organization whose sole responsibility was to ensure that all information reported within this disclosure is accurate.

IMPROVING OPERATIONAL ENERGY EFFICIENCY

Jacuzzi Group’s sustainability program is directly aligned with its long-term objective to incorporate energy efficiency at every level of the Business. Each spa manufactured and sold by Jacuzzi adheres closely to the energy efficiency standards set by the California Energy Commission (CEC). These standards are notorious for being some of the strictest in the world for the consumer durables industry, further outlining Jacuzzi Group’s commitment to incorporating best practices in its operations. Jacuzzi has set a long-term target with the California Energy Commission for at least 50% of its products to surpass the CEC’s efficiency requirements by 20% by 2025. As of 2023, over 90% of Jacuzzi’s catalogue of products exceed these efficiency standards.

Since the sustainability program’s establishment, Jacuzzi has regularly implemented operational and product innovations that support energy efficiency. In 2023, these initiatives included power factor corrections, compressed air system automations, air curtain installations, LED lighting upgrades, environmental assessments, electric vehicle fleet conversions, and the purchase of renewable energy credits to offset over 83% of the Company’s scope 2 emissions.

In 2023, 83.5% of the total electricity consumed by Jacuzzi Group’s global operations was renewable. This includes 216,737 kilowatt hours captured through solar arrays at the Company’s Sunrise Canada and Brazil manufacturing sites and 18,814,584 kilowatt hours captured through the purchase of renewable energy certificates (RECs) at all United States, Mexico, and Canada facilities. The installation of photovoltaic panels and purchase of RECs are two of Jacuzzi’s primary strategies for capturing and utilizing clean electricity within its operations.

THE IMPACT OF CONSUMER USAGE DATA

Jacuzzi’s commitment to operating sustainably does not end once its products are sold to consumers. The Company recognizes that the methods in which its customers operate their hot tubs will determine the unit’s overall impact on the environment. To this end, Jacuzzi has created a monitoring application that tracks

and communicates product efficiency data to end-users in an easy to digest manner. Jacuzzi Group’s proprietary SmartTub application, first released in 2020, became extremely useful in 2021 with the release of the Carbon Footprint tab. This portion of Jacuzzi’s proprietary software can be used by customers to track the carbon footprint of their spa and compare it against other users in their areas. The carbon footprint software establishes a fleet average using a 30-day rolling average that allows Jacuzzi to account for external factors that impact energy usage such as seasonality and weather. The goal of the application is to help consumers better understand the impacts of using their products so they can develop responsible methods to limit their energy usage.

Jacuzzi furthered the usefulness of its SmartTub application by implementing features that allow customers to track their chlorine, PH, and alkalinity balancing data. The Company also created a sensor technology that allows for remote monitoring, cover detection sensors, water level sensors, fill and drain sensors, and increased Wi-Fi capabilities. The additional knowledge provided by these features gives consumers the ability to reduce or eliminate potential negative impacts that may arise from exceeding recommended thresholds. Jacuzzi’s SmartTub application also includes a feature called multi-spa management which allows users to auto schedule dates and times for jets, bubbles, lights and heaters to be activated. These groundbreaking developments are new features in the spa industry and will better allow Jacuzzi customers to get the most out of their spas while also ensuring that they remain safe and energy efficient.

As of December 31, 2023, there were 23,147 active spas registered on Jacuzzi’s SmartTub application. As this user base continues to expand at a rapid rate, the Organization must also meet the ever-changing needs of its sustainability-focused consumers.

CARBON OFFSET PROJECTS SUPPORTED

As a complement to Jacuzzi’s initiatives to manage and reduce its absolute GHG emissions, the Company has since (2021) purchased carbon credits to neutralize (“offset”) its residual Scopes 1 and 2 operational emissions. The Company’s primary climate mitigation approach is to reduce its absolute carbon emissions over time. Through the purchase of carbon credits, Jacuzzi provides carbon financing to climate mitigation projects beyond its value chain. As each credit corresponds to the removal of one ton of CO2 equivalent (CO2e), the Company can – under voluntary carbon market standards and guidance –claim it has reached carbon neutrality (Scope 1 and 2) in a given year by purchasing credits to offset its residual emissions.

From the outset, the two projects from which Jacuzzi has purchased carbon credits are the “Great Bear Forest Carbon” and the “Guatemalan Conservation Coast” projects. These projects were chosen because of their strong credentials on environmental and biodiversity issues as well as their social initiatives.

The Kermode (“spirit”) bear in the scenic Great Bear Rainforest Lake Atitlan and volcanos in the highlands of Guatemala

Great Bear Forest Carbon Project, Canada

The Great Bear Forest covers c. 6.4 million hectares of north and central coast in British Colombia in Canada and is home to the First Nations people who have inhabited this land for up to 10,000 years. This rare and rich ecosystem is also home to rare species of plants and animals (including the Kermode Bear). The aim of this project is to improve forest management in the region, generating emission reductions through the protection of forest areas that were previously designated, sanctioned or approved for commercial logging. The project activities include changes in land-use legislation and regulation that result in the protection of forest areas and reduction of harvest levels.

Guatemalan Conservation Coast Project, Central America

The Guatemalan Conservation Coast program works to address the drivers of deforestation through effective law enforcement, land-use planning, education, economic opportunities, and sustainable agroforestry initiatives. Some of the most important project achievements to date are the protection of 30 threatened tree species including the Baird’s tapir and West Indian manatee, the protection of 54,157 hectares of threatened forest in the Mesoamerican Biological Corridor and the creation or support of 487 jobs for indigenous and local communities.

PERFORMANCE

As information related to Jacuzzi Group’s 2023 GHG emissions is communicated below, note that in some cases year over year comparisons may not reflect the emissions data first published within Jacuzzi Group’s 2022 Sustainability Report. Any variations in reporting result from the Company improving its data collection, reporting processes, and updating its disclosures accordingly.

Jacuzzi Group’s 2023 GHG inventory is conducted in accordance with the GHG Protocol and includes all global manufacturing sites and warehouses that operate under the Company’s direct operational control. Emissions data was prorated for sites that were acquired or closed during the calendar year. The total scope of Jacuzzi’s GHG inventory is representative of over 95% of the Company’s total business.

In 2023, Jacuzzi Group saw a 4% reduction in total GHG emissions when compared to its 2022 performance. Much like in previous years, Jacuzzi’s scope 3 emissions accounted for the majority (92%) of total GHG emissions. Jacuzzi’s scope 1 and 2 (market) emissions decreased by 71% versus 2022. This is due to the operational efficiency measures mentioned above, the continued use of onsite renewable energy via photovoltaic panels and the purchase of renewable energy certificates (RECs).

Jacuzzi Group’s Brazil manufacturing facility installed a solar panel array to reduce its reliance on greenhouse gas emissions and increase its renewable energy generation and consumption.

Across its scope 3 reporting categories, Jacuzzi found that Use of Sold Products and Purchased Goods & Services were the areas with the most significant GHG emissions. These categories represented about 78% (Use of Sold Products) and 17% (Purchased Goods & Services) of Jacuzzi’s annual scope 3 emissions for the calendar year and 92% of total GHG emissions (scope 1, 2 and 3).

As Jacuzzi continues to implement sustainable solutions into its value chain, the Company wants to make its products more efficient and its operations more

1,617,341

sustainable as well as mitigating any harmful effects that could be made to the environment. Jacuzzi Group has aligned its strategies to support the United National Global Compact (UNGC) and Science-Based Target Initiative (SBTi) objectives and will continue to use these partnerships as a guide for implementing beneficial initiatives that align Jacuzzi’s business and products with its long-term sustainable objectives.

Scope 2 Location and Market emissions are now zero in Mexico, Canada, and the United States as a result of Jacuzzi’s 2023 REC purchases.

UNITED

STATES EMISSIONS BY SUBREGION

2024 map of U.S. eGRID subregions

MATERIALS SOURCING

OVERVIEW

As a manufacturer of consumer durables, responsible materials sourcing is an essential element of Jacuzzi Group’s business that depends on partnerships formed with suppliers who offer sustainable alternatives to the materials used most during production. Because Jacuzzi products exist within the wellness space, it is especially important to consider the safety and sustainability of the input materials from which its products are comprised. Jacuzzi Group’s specific materials sourcing initiatives tie directly into its long-term material transparency targets that include the reduction of its carbon footprint and an effort to drive cost savings across the global business through responsible materials sourcing programs.

A facet of Jacuzzi Group’s materials sourcing efforts in 2023 involved seeking new full life-cycle partnerships with organizations that take excess materials, recycle them, then sell them back to Jacuzzi for reuse. Jacuzzi Group’s partnership with Trinseo, its primary acrylic vendor, is an example of one of its full life-cycle partnerships where purchased materials are used during production and the scrap is sold back to the Company from which it was purchased. Jacuzzi Group has supported this buyback opportunity for the past three years at its Italy operations center and will continue to implement similar solutions at sites where opportunities are available.

INCORPORATING SUSTAINABLE MATERIALS

For the past two years, Jacuzzi Group has streamlined its process for sourcing the sustainable materials used during production of its spas and baths. This process, led by a cross-functional team that operates across many parts of the Organization, continued to adapt, and improve its operations in 2023.

Jacuzzi Group’s journey to incorporate more sustainable materials into its product lines begins with its Global Sourcing, Engineering, and Innovation teams who work together to research alternative solutions to improve efficiency, cut costs, and create less operational waste. As new sustainable materials are identified, the engineering team completes a complex set of testing to determine if it meets or exceeds the performance and health and safety results of the pervious material. Jacuzzi’s teams also want to understand the financial impact of the material change, so financial forecasting is completed by the marketing team with the goal of identifying the estimated costs associated with new developments. Once the sales and marketing team have provided their input, the New Product Implementation unit takes over until the agreed upon material has been introduced into the value chain.

In addition to Jacuzzi Group’s New Product Implementation team, the Organization also has a global Product & Quality team that meets monthly to address potential materials sourcing risks and opportunities associated with making changes to Jacuzzi products. It is during these meetings when stakeholders are given the floor to discuss specific material upgrade opportunities and ideas surrounding the upgrade or replacement of less efficient materials that could be removed from the production process.

One recent project that supported Jacuzzi’s materials sourcing objectives was the implementation of a more sustainable alternative to the polyurethane spray foam insulation. The new polyurethane alternative, which is comprised of more than 30% recycled content, was identified by Jacuzzi’s New Product Implementation Process as a zero-scrap solution that also increased the efficiency of the spas where it was applied. This data drove the Company to incorporate this polyurethane spray into more than 30% of products manufactured at its Mexico Operations Center, Jacuzzi Group’s largest manufacturing facility. The results of the material change had positive impacts on the value chain. Specifically, the new insulation offers a 10-15% increase in total thermo-efficiency. This means that by switching to a more sustainable input material, Jacuzzi not only improved its operations by making them more sustainable, but it also improved product efficiency for consumers.

In 2023, Jacuzzi furthered its efforts to incorporate new sustainable materials into its processes by switching adhesive types to a resin that has a higher postindustrial recycling percentage than its predecessor. This resin, which is comprised of over 11% recycled content, is designed to be used in both shower and spa applications, therefore it can be implemented into both the bath and spa sides of Jacuzzi’s manufacturing operations.

The impacts of materials sourcing improvements are farther reaching than most stakeholders consider. For example, the insulation and resin upgrades mentioned above impact the Company at many levels. Through the implementation of new materials, employee manufacturing processes change, vendors are added and removed, input materials are adjusted, the waste stream is impacted as new materials must be disposed of safely, and the energy efficiency metrics on each spa sold changes quickly.

Beyond Jacuzzi’s work to incorporate more sustainable input materials into its products, the Company also wants to make sure that the materials have been sourced safely. This objective drove Jacuzzi to work closely with its Product Quality and Safety teams in 2021, 2022, and 2023 to ensure that 100% of the wood sourced by the Organization is Forrest Stewardship Council (FSC) certified.

PERFORMANCE

The sourcing of sustainable materials is an essential element of Jacuzzi Group’s business that necessitates constant collaboration with its management teams, manufacturing site owners, sourcing team, marketing team and other stakeholders. The Company recognizes that as its business grows, more input materials will need to be purchased to meet production requirements. This demand highlights the importance of identifying replacements for unsustainable input materials before the increased volumes cause damage to the environment.

In 2023, Jacuzzi Group used nearly 61 million pounds (about 27,669,134 kg) of input materials to manufacture its spas and baths. Of this total, approximately 51,775,186 pounds (about 23,484,810 kg) of input materials were used to create spas and 9,242,227 pounds (about 4,192,200 kg) were used to produce bath units. The Company’s materials sourcing efforts resulted in a 47% year-over-year reduction of input materials versus 2022.

This supports the narrative that Jacuzzi is becoming more efficient with the materials it uses within its operations. By practicing responsible materials sourcing and trying to incorporate sustainable alternatives into products and processes where possible, Jacuzzi saves money for the Business, increases the efficiency of its products, and improves the wellness of its stakeholders.

WASTE

OVERVIEW

In 2023, Jacuzzi Group generated a high volume of operational waste that necessitated advancements toward globally regulated waste management practices. From the materials required to manufacture Jacuzzi products to the end-of-life impacts those materials have on the environment, the Organization understands the importance of implementing responsible landfilling and recycling solutions.

The first step to Jacuzzi’s waste reduction efforts was to arrange waste stream audits at its facilities with the highest annual waste volumes. Completing such audits allowed Jacuzzi’s sites to better understand the makeup of their waste streams which positioned them to identify recycling partners suited for their needs. As new recycling opportunities were identified across the Company, Jacuzzi’s sustainability team worked closely with senior leadership to formulate cost-effective and sustainable solutions to implement regular waste stream updates.

DECREASING OPERATIONAL WASTE

By comparing year-over-year waste totals, Jacuzzi extrapolated that its Mexico Operations Center 1, Hydropool Canada Manufacturing Site, and Valdosta Manufacturing facility produced significantly more waste than its other manufacturing operations. This knowledge provided a valuable starting place to begin a waste reduction journey, as the Company was able to understand which locations it should prioritize decreasing operational waste based on the total volumes of waste they produced annually.

Through Jacuzzi’s waste stream audits, the Organization’s management team learned that some of its the Company’s largest facilities were unfamiliar with the diverse types of materials that comprised their various waste streams. To combat this issue, Jacuzzi’s sustainability team worked closely with site managers across the globe to arrange waste audits where external organizations evaluated the contents of each sites’ dumpsters and roll-offs. The knowledge gained from these audits was pivotal in assisting the sustainability team with locating the right recycling partners to pick up newly identified materials and in some cases, pay the sites for their responsible disposal.

Other waste reduction projects implemented across Jacuzzi’s operations in 2023 included a partnership at Jacuzzi’s Valdosta manufacturing site that resulted in the recycling of plastic bladders used to hold a liquid frequently used in manufacturing, sponsored E-waste pickup events at the Company’s headquarters office in Irvine, and a painting cabin retrofit at Jacuzzi’s Brazil manufacturing facility that significantly reduced the volume of hazardous waste generation.

Jacuzzi’s Bathwraps manufacturing site also recently capitalized on an opportunity to recycle pink XPS foam. This low-volume XPS foam was taking up a lot of space, meaning that the site was filling their dumpsters up quickly. To prevent this, an additional roll-off was placed at the Roselle facility and is regularly loaded with XPS foam.

Once filled, the foam is picked up and driven to another recycling partner where it is repurposed for reuse, and the roll-off is returned to the dock so the process can be repeated. The impacts stemming from these projects will become more evident within next year’s sustainability reporting cycle.

PERFORMANCE

Jacuzzi Group’s 2023 waste data collection captured over 95% of the Company’s total waste footprint. The collection process utilized quarterly outreach questionnaires that were sent to each manufacturing site asking them to report specific details totals, partnerships, and all haulers and recyclers with whom they have existing partnerships with. Through this process, Jacuzzi calculated the following information.

The total amount of waste generated by Jacuzzi’s operations in 2023 was 8378.71 metric tons. This is a 33% reduction from total waste generated by the Organization in 2022, which was 12,516.6 metric tons. Although waste stream improvements across Jacuzzi’s facilities can drive reductions that are not connected to sales volume, a sizable portion of its annual totals will be driven by the number of products sold. Even still, Jacuzzi believes that these results indicate that the Business is becoming more efficient with its material usage as it works to further refine its waste reduction practices.

In 2023, Jacuzzi Group diverted more than 1,967.2 metric tons (About 24%) of waste from landfills. This is a notable improvement from the previous year’s waste diversion efforts which saw about 20% of its waste stream diverted from landfills. While the Business has not set specific waste reduction targets, Jacuzzi recognizes the importance of reducing its total waste generated and is actively attempting to reduce the total volume of waste that is generated annually. Below is a year-over-year comparison of Jacuzzi Group’s waste totals.

ENVIRONMENT > WASTE

WASTE GENERATED BY MATERIAL (METRIC TONS)

WASTE DIRECTED TO DISPOSAL (METRIC TONS)

WATER

OVERVIEW

As an organization that manufactures products that require water to be operated, Jacuzzi Group recognizes the impact that water sanitation, usage, conservation, and withdrawal have on its business. Water usage across Jacuzzi’s manufacturing facilities occurs most frequently in quality testing, standard plumbing, and general landscaping. Given how relevant water usage is to Jacuzzi Group’s operations and products, the Company recognizes that there are risks and opportunities that should be considered prior to making water-related operational and product changes.

A core element of Jacuzzi’s water reduction strategy relies on the method and frequency at which its water data is collected. To ensure comparisons are accurate and current, Jacuzzi Group’s sustainability team collects quarterly water withdrawal and consumption data for each manufacturing facility where it has operational control. The data is assessed and compared to previous results to determine which locations are most in need of water conservation initiatives.

Jacuzzi Group’s water reduction efforts have led to the development of a variety of projects designed to support the Business’s’s long-term objectives. Some of the largest projects implemented across Jacuzzi’s facilities include the construction of water recycling towers, product testing upgrades that require less water, low-flow fixture installations, and improved water monitoring sensors in Jacuzzi products .

Because each of Jacuzzi’s manufacturing sites is responsible for building different models of spas and baths, their manufacturing processes and reliance on water differ slightly. For this reason, Jacuzzi must tailor its water conservation strategies to independently support the conservation and reduction needs at each of its respective facilities.

INCREASING OPERATIONAL WATER EFFICIENCY

Jacuzzi Group’s manufacturing operations account for a substantial portion of its total annual water usage. This indicates that to reduce its total water usage, each manufacturing location, regardless of size, must make sure it adheres to a regulated set of water reduction objectives. With this in mind, the Company worked to incorporate low-flow fixtures, automatic shut-off valves, and water dispensing machines across its facilities. At the conclusion of 2023, it was estimated that over 80% of Jacuzzi’s manufacturing sites and warehouses installed low flow fixtures and automatic shut-off valves, with some facilities also installing water towers and upgraded misters to reduce water usage on the production line.

Another highlight of Jacuzzi’s water reduction journey was implemented in 2022 when the Organization compared water usage across its sites and determined that one specific location had much higher usage rates than the other operations, it existed in a water scarce region, and the size of the facility was not big enough to warrant the high water usage rates. These three factors helped Jacuzzi identify its Southern California Operations Center as a key location to reduce water usage.

With further research, the Company learned that the reason behind the high volume of water usage its property manager’s specific watering requirements for the grassy areas that line the fronts and backs of the property. After engaging with several environmental experts and attaining proposals for projects such as switching to a smart watering system and replacing the grass with desert fauna, Jacuzzi decided to reduce its watering frequency at the facility by one cycle per day. The impact of this change was apparent as Jacuzzi received updated data from the site showing that the facility reduced its water usage from 15.17 ML to 12.79 ML in just one year, close to a 16% reduction.

INNOVATIVE WATER SANITATION SOLUTIONS

Jacuzzi Group’s efforts toward safe water sanitation and consumption spans beyond its manufacturing operations. The Company has developed an innovative sanitation solution aimed to reduce the ongoing need for traditional chemical cleaning agents like chlorine and bromine in its spas. This innovation, which Jacuzzi Group is calling True™ water care, utilizes nanobubble technology to create small oxygen-filled bubbles more than 2500 times smaller than a grain of salt to treat and sanitize dirty water without a reliance on traditional chemical contaminants. The nanobubbles surround, naturally scrub, and destroy any microscopic bacteria they encounter.

True™ completely transforms spa ownership by reducing the daily and weekly maintenance required to safely operate Jacuzzi spas. In addition to a reduced maintenance frequency, True™ does not leave consumers with the chemical feel or dryness that is typically experienced when using traditional chlorine and salt-based water care systems.

Throughout the year, Jacuzzi Group completed regular product safety tests to ensure that True™ would not be harmful to consumers. One of the most important safety tests completed was a microbiology test intended to ensure that bacteria and viruses common to hot tubs could not survive in the water of spas where the nanobubble upgrade was applied. Lab results showed that True removes over 99.9% of bacterial and viral contaminants without chlorine or other chemical additives.

True™ water care also has positive impacts on the environment by allowing for a much safer method of water disposal. With True™, water changes on Jacuzzi spas have become much less damaging to the environment as many of the harmful chemicals have been limited or removed entirely. This allows for water reuse opportunities such as utilizing recently replaced hot tub water for home irrigation.

IMPROVING CONSUMER WATER EFFICIENCY

Jacuzzi Group’s work towards best practice water management solutions does not end at an operational level. Jacuzzi believes that it is equally important to provide its customers with the tools they need to improve their water usage tendencies as it is to make sure that Jacuzzi manages water responsibly within its operations.

To improve the product knowledge base of its consumers, Jacuzzi Group has released a variety of sustainability focused educational resources available via its proprietary SmartTub application. These materials are designed to highlight the suggested methods of operating Jacuzzi spas efficiently, and to provide customers with innovative ideas about how they can save water during spa maintenance. Jacuzzi saw positive feedback from its customers who utilized these resources, and it will continue to develop new materials as future innovations create a use case for more educational resources.

PERFORMANCE

In 2023, the total water withdrawn across Jacuzzi operations was 51.81 megaliters. 39.94 megaliters of this total were supplied by third-party providers, with 21.03 ML sourced in areas with water stress. Moving forward, Jacuzzi aims to reduce its reliance on acquiring water from stressed areas by incorporating aligning its operations with vendors who support more sustainable programs.

Out of the total 51.81 megaliters of water withdrawn in 2023, Jacuzzi consumed 5.2 megaliters (about twice the volume of an Olympic-size swimming pool). This means that approximately 10% of the water withdrawn by Jacuzzi operations was consumed in 2023. The other 90%, or 46.61 megaliters, was discharged back into the environment. This data compares favorably against Jacuzzi’s result from 2022 which showed much higher withdrawal and consumption rates than 2023.

SOCIAL

CONSUMER WELLNESS

OVERVIEW

Jacuzzi Group’s consumer wellness strategy is an important part of its business that relies on proprietary technology, detailed educational resources, and partnerships with philanthropic organizations to provide consumers with excellent product experiences. Jacuzzi recognizes that the success of its business relies on its ability to meet the wellness needs of its consumers and structures its global operations and products to support their evolving expectations.

With a large catalogue of spa and bath models designed for a variety of applications, Jacuzzi wants its customers to be confident about which product is best suited for their wellness needs. This is one reason consumer wellness resources are especially important. Jacuzzi’s work to teach consumers about its products by designing educational resources an important piece of its wellness efforts that is furthered by its work with brand ambassadors who promote the wellbeing of Jacuzzi products and offer insights into the ways that its spas and baths have become mainstays of their wellness journeys.

PROMOTING CONSUMER WELLNESS

Jacuzzi Group’s lifelong wellness program is built to serve the needs of consumers of all ages and ailments. To account for evolving consumer trends, Jacuzzi’s Performance Program utilizes resources such as podcasts, YouTube videos, and athletic sponsorships to highlight the numerous benefits of Jacuzzi products. The goal in designing and publicizing these resources was to provide consumers with detailed information to help them identify which Jacuzzi product is best suited for their specific needs.

Jacuzzi Group works closely with its sponsored athletes to promote the wellness benefits of Jacuzzi products that can be used for athletic recovery and training. One area where this information is disclosed is within the “Jacuzzi Performance Podcast.” The Jacuzzi Performance podcast highlights different benefits of Jacuzzi spas and baths

and speaks to the ways that athletes have found wellness benefits by using Jacuzzi products. Jacuzzi’s sponsored athletes include English rugby superstar Jamie Shaul, Olympic champion Adam Peaty, Paralympic Gold medalist Jessica Jane Applegate, and many more incredible athletes and Olympians who speak to the health benefits offered by Jacuzzi products.

In support of a more visual platform, Jacuzzi created short YouTube videos to share testimonials from some of its sponsored athletes. Within the videos are examples of how Jacuzzi products are used by athletes in training and recovery, and how their usage tendencies vary from sport to sport. Jacuzzi found that providing testimonials from notable athletes is a valuable marketing tool for promoting the wide range of wellness benefits that Jacuzzi products can have on the lives of other potential consumers.

In 2023, Jacuzzi Group furthered its efforts to educate consumers about the wellness benefits of its products by hosting three events where sponsored athlete Adam Peaty

visited local retailer showrooms to present his experiences with Jacuzzi products and offer insight into the wellness benefits for athletes. These events’ attendance ranged from coaches and swimmers to consumers who sought to incorporate new recovery methods into their schedules.

SMARTTUB APPLICATION INCORPORATION

While Jacuzzi’s performance program is designed to attract new customers by giving them more information about the wellness benefits of its products, other consumer-focused innovations like Jacuzzi’s proprietary SmartTub application is designed to help keep existing customers informed about their personal wellness habits.

The SmartTub application, first released in 2020, is the main method through which Jacuzzi offers customers the ability to track their spa’s performance and usage data. The application is constantly being upgraded with features designed to support the evolving needs of users. Within the SmartTub application is a wealth of detailed information designed to allow customers to learn more about their settings, predict monthly energy usage volumes, and show users how their data compares to other spa users in their localities.

In 2022, the SmartTub application made key advancements by incorporating the individual user data of all spas registered to the platform. Other upgrades included the integration of a water quality sensor which allowed users to view their PH levels, chlorine, and alkalinity balance, all from the mobile application. The ability to auto-schedule heating was another recent improvement to the SmartTub application. With this technology, consumers can select specific dates and times they want specific features such as jets, lights, and heat to turn on automatically, further optimizing the wellness experience.

The SmartTub application is a fantastic resource offered to consumers to help them improve the quality of their interactions and experiences with Jacuzzi products. As the Company continues to design new features within

its SmartTub application, the expectation is that a larger group of customers will elect to register for the service. Comparing SmartTub’s total active user base year over year, there were 19,752 active users at the end of 2021, 30,576 users at the end of 2022, and 23,147 users in 2023. The SmartTub feature was included on 28% of all hot tubs sold by Jacuzzi in 2023.

PHILANTHROPY

Supporting philanthropic organizations is another important element of Jacuzzi’s consumer wellness program. Over the past years Jacuzzi Group has built upon its existing philanthropic partnerships and increased the value of its annual contributions sent to charitable organizations.

Jacuzzi’s proprietary SmartTub application leverages innovative technology to give users the ability to monitor and manage the performance of their hot tubs from anywhere in the world.

SOCIAL > CONSUMER WELLNESS

PHILANTHROPIC

ORGANIZATIONS SUPPORTED

NORTH AMERICA REST OF WORLD

American Cancer Society

Association of Parents of Disabled People

Baths for the Brave Ituana Association for the Visually Impared

Let It Be Foundation

Make-A-Wish Foundation

WISH for OUR HEROES

Alzheimer's Association

Wise Guys Charity Fund

Diabetes Assocaition of Canada

Special Olympics Ontario

In addition to supporting external charities, the Organization has also created its own philanthropy program via its Sundance Spas brand. Within this brand is a movement called Good Cause Spas. Good Cause Spas partners with WISH for OUR HEROES, a national 501(c) (3), to donate spas to veterans who can benefit from the healing power of hydrotherapy. Jacuzzi works closely with WISH for OUR HEROES each year to support disabled veterans by donating one spa for every dealer location that sells over 100 spas. Each spa is donated directly to the family of a veteran who can benefit from a spa but does not have the means or ability to purchase one for themselves. This partnership is an important part of Jacuzzi’s philanthropic program as it asserts the Company’s commitment to its value system which is founded on putting the people who need its products ahead of the profit from related sales.

Another integral piece of the Good Cause Spas movement is Jacuzzi’s partnership with Operation Appreciation. For the third year in a row, Good Cause Spas sponsored Operation Appreciation’s Red, White and Bear program

Hospital General de Tijuana

Agtagama A.C Retirement Home

Ayuntamiento de Tijuana, B.C Fire Station

Monte de Dios de Ninos Orphanage

Pordeone Town Council (Italy)

Teenage Cancer Trust

Solvatten

that offers free access to an off-the-grid retreat nestled in the beautiful North Georgia mountains. Together with their families, veterans are provided with a relaxing environment meant to help them decompress from stress and trauma. The luxury cabin at the retreat features four bedrooms, a full kitchen, a living room, wraparound porches, and of course, a Sundance Spa on the terrace. This space was designed to incorporate as much outdoor space as possible so veterans can feel in nature and away from the chaos of modern society.

Dimension One Spas, another Jacuzzi brand, has also recently established an important partnership with a philanthropic organization called Solvatten. Solvatten is a social enterprise that started in 2006 in Sweden with one mission: to provide people living in developing countries with safe and hot water in a portable, environmentally friendly way. Solvatten now creates water treatment units that can be opened like a book and placed into direct sunlight to capture the energy needed to purify water. The combination of UV rays and heat from the unit creates an environment that facilitates water purification, and depending on conditions, can remove all harmful pathogens in between 2 and 4 hours.

In 2023, Jacuzzi Group’s Dimension One Spas brand and its retail network partnered with Solvatten to donate over 100 solar powered water treatment units to the Solvatten Kenya project, a non-profit organization that brings safe water to rural Kenyan communities where water is not readily accessible. It is estimated that for every water treatment unit donated by Dimension One Spas, 5.5 people in Kenya gain access to water, over 50 trees are preserved, and about 7 tons of CO2 emissions are eliminated.

PERFORMANCE

In 2023, Jacuzzi Group donated $155,406 to philanthropic organizations across the globe. This includes more than $95,000 donated to WISH FOR OUR HEROES and $30,000 donated through tie-in promotional programs. The Business’s individual brands also donated an

SOLVATTEN PROJECT IMPACT DETAILS

Solvatten Units Donated: 100 units

of Water Purified: 4 million liters Co2 Emissions Prevented: 700 tons Estimated Illness Reduction: 31,000 days

estimated $30,000 to external charities that support relevant consumer wellness initiatives.

Moving into 2024, Jacuzzi will continue to establish partnerships with charitable organizations that work to support its outlined sustainability objectives. The Company recognizes that philanthropy and consumer wellness initiatives are closely tied to good business practices and wants to situate itself as a leader in both spaces. To this end, Jacuzzi Group’s long-term plans for consumer wellness are to focus on furthering its Jacuzzi Performance Program, implement and communicate new product improvements to consumers more efficiently, and to work more closely with external organizations to identify and support the wellness needs of Jacuzzi stakeholders and consumers alike.

IS HOW SOLVATTEN WORKS

1. Open like a book Pour in the dirty water

2. Expose to the sun Leave in the sun 2-4 hours

3. Wait for decontamination

Microbiological contaminants such as bacteria, viruses and parasites are destroyed.

4. Safe to use

An indicator shows when the water is safe to use

EMPLOYEE HEALTH AND SAFETY

OVERVIEW

Jacuzzi Group’s employee health and safety (EH&S) program benefits its stakeholders by outlining the regulations set by the Company to eliminate instances of workplace injury and illness.

Jacuzzi Group understands the risks associated with employee health and safety and contributes resources toward best-in-class initiatives that support the longevity of its team members. With employees located at manufacturing sites, warehouses, offices, and showrooms around the world, it is especially important that the Organization meets or exceeds all local health and safety standards. For this reason, each facility under Jacuzzi Group’s operational control is in compliance with all applicable safety standards for their localities.

Jacuzzi Group is constantly attempting to identify solutions to reduce the rates of injury across its operations. The Company believes that its employees feel safe and protected when they arrive at work to complete their responsibilities. This outlook has driven the development of new occupational health and safety initiatives like improved warning signage, Personal Protective Equipment (PPE) upgrades, Occupational Health and Safety Administration (OSHA) certified training courses for installers that are aimed at reducing injury rates.

OCCUPATIONAL HEALTH AND SAFETY

Occupational Health and Safety is a multidisciplinary field that covers potential hazards, injury prevention, safe chemical disposal, and general dangers while on the job. As a company that operates within the consumer durables manufacturing space, Jacuzzi Group feels obligated to create and maintain a concise set of safety standards that protect the health and safety of its employees. Across the Organization, each manufacturing site and large warehouse has created policies, procedures, and trainings designed to make its operations safer for employees. Jacuzzi Group’s internal health and safety system applies to 100% of workers, regardless of if their employment status is temporary or full-time.

Jacuzzi’s efforts to further improve its operational safety performance began with its sustainability team meeting with top levels EH&S data owners from each manufacturing facility to re-outline the classifications and definitions of injuries and illnesses. The Organization chose this project to ensure that it collects accurate safety data and to better identify the specific areas of its business that need more safety resources and support.

Data collected from Jacuzzi Group’s global health and safety audit revealed that the Company’s mobile remodel and installation teams had much higher injury rates than workers at its manufacturing facilities. Through further internal safety audits, the Organization learned that its installers needed higher quality protective equipment (PPE) to avoid future injury. This knowledge allowed Jacuzzi Group’s management team to allocate the necessary funding to purchase upgraded safety gear, which has already had a positive impact on injury rates.

In addition to receiving improved safety and protective equipment, Jacuzzi Group installers were also tasked with completing a certified installer safety training program for the first time in 2023. This program outlines the Company’s safety expectations for installers and suggests preventative measures that can be taken to avoid injury.

Also included in the training are topics like common types of injuries that workers experience so teams can be more aware of the risks they face while installing Jacuzzi products. This training is available online and is a 10-hour OSHA certified curriculum that has become mandatory for installers to successfully complete.

PROMOTING EMPLOYEE WORK LIFE BALANCE

Jacuzzi Group recognizes the importance of promoting a good work-life balance for its employees. The Company’s employee wellness program offers resources and tools to improve the physical and mental health of team members. Employee Assistance Programs provide employees with access to a 24/7 hotline where callers can access legal resources, financial advisory, crisis communication, general counseling services, and educational seminars.

Beyond the resources offered to promote work life balance, another important part of Jacuzzi’s employee wellness program is the flexible working opportunities offered to team members. The Organization is committed to offering flexible working arrangements because it understands that employees have their own lives and believes that both should be supported. Data shows that when these employees have the freedom to set their own schedules, they are happier, perform better at work, and spend more time working.

Another advancement in Jacuzzi’s employee wellness program was the incorporation of employee-focused webinars that touched on a wide range of important health-related topics. Hosted by Marino Wellness, these webinars spoke in depth on topics such as work life balance, healthy eating, disease prevention, personal fitness, time management, and other advice about how to incorporate sustainable habits into the busy lives of employees.

MONTH WELLNESS TOPIC

JANUARY New Year New Mindset

FEBRUARY Three Foods for Heart Health

MARCH Optimize Digestion From Your Desk

APRIL Chair-Based Stretches for Relief

MAY Silence the Shame of Social Stigmas

JUNE Live Chef Demonstration: Summer Refreshers

JULY Stretch and Relax Sound Bath Experience

AUGUST Saving Money 101

SEPTEMBER Fitness Nutrition Hacks

OCTOBER Removing the "Spook" from Mental Health

NOVEMBER Holiday Survival Tips

DECEMBER Saving Money During the Holidays

The implementation of wellness initiatives at Jacuzzi Group’s headquarters facility is immediately visible. With features such as a gymnasium, yoga studio, basketball court, garden, and health food store onsite, employees are provided with many ways to incorporate active lifestyle practices minutes from their desks. At the core of the Company’s work life balance program are unique events

DESCRIPTION

Employees learned how to cultivate a growth mindset.

Employees learned the top three research-based foods for heart health.

Employees learned tools to help them maintain healthy digestion while working in sedentary roles.

Employees learned various stretches and mobility exercises to align the body and calm the mind.

Employees learned about factors that contribute to mental health stigmas and ways to combat them.

Employees learned how to make three refreshing Summer beverages.

Employees learned about chair stretches followed by a sound bath meditation experience.

Employees learned strategies for better financial wellness and how to reduce stress related to money.

Employees learned how to fuel their bodies with the right nutrients to maximize performance.

Employees learned common myths and misconceptions about mental health.

Employees learned tips to find the perfect balance between holiday eating and healthy eating.

Employees learned how to avoic holiday debt and keep their financial goals on track during the holidays.

that are offered to employees. The events held each year include a charity driven basketball tournament that offers employees an opportunity to get outside and play a game for a worthy cause and regular E-waste drives that present employees with the chance to recycle outdated electronics.

PERFORMANCE

Jacuzzi Group’s Employee Health & Safety program undergoes periodic internal and external audits. In partnership with a third party provider, the Company assesses its manufacturing sites across the following categories: Training, Internal Auditing, Investigation, Observation & Reinforcement, Industrial Hygiene, Ergonomics, Claims Management, Safety Management Practices, Motor Vehicle Safety, Occupational Health, Electrical, and Machine Safety, Wellness-Stretching, Risk Assessment, Job Safety Analysis, Near-Miss Program, Safety, Committee/Employee Engagement, Corrective Action Development/Tracking, Preventative Maintenance, Life Safety, Walking, Working Surfaces, Safety Policies and Procedures, Workplace Violence, Prevention, Property Safety, Personal Protective Equipment (PPE), and Corporate Results.

The primary types of injuries that occurred at Jacuzzi Group in 2023 were slips, trips, falls, and contact with objects or equipment. Employees across the Company’s global facilities worked approximately 5,139,680 hours in 2023 and experienced 58 work-related incidents for a total rate of recordable work-related injury rate of 2.26. Out of the 58 instances of injury, 30 resulted in both injury and lost time. Jacuzzi Group’s 2023 Lost Time Injury Frequency rate was 1.36.

As the Company moves into 2024, Jacuzzi expects to improve its health and safety performance by increasing the amount of employee trainings offered to installers, providing more protective equipment, implementing new types of employee feedback surveys, and continuing to exceed or maintain compliance with all local regulations.

PRODUCT SAFETY

OVERVIEW

Jacuzzi Group’s robust product safety program involves continuous comprehensive evaluations to determine if the products it manufactures and commercializes are safe for consumers to operate. To make this assessment, Jacuzzi’s New Product Introduction (NPI) process is driven by a cross-functional team that reviews suggested changes and certifies that each product adheres to strict safety regulations without sacrificing performance and reliability. The safety performance of Jacuzzi products is monitored to protect consumers from risk of injury and to better align with the regulatory standards set by the Underwriters Laboratories (UL) and International Electrotechnical Commission (IEC). Jacuzzi Group recognizes that there are internal and external risks to its stakeholders that could derive from poor product safety practices, thus, the Company holds itself to the highest level of external product safety guidelines with the intention of becoming a product safety leader within the consumer durables industry.

JACUZZI’S COMMITMENT TO SAFETY

Jacuzzi Group’s gated market development process relies on identifying, assessing, and mitigating potential product safety risks that could have negative impacts on consumers. To oversee this process, Jacuzzi has formed a cross-functional working group of product safety stakeholders tasked with aligning on which product safety solutions are best to incorporate into Jacuzzi products. This team, comprised of members from Jacuzzi’s Global Quality, New Product Engineering, Supply Chain and Sourcing, Legal, and Marketing departments, meets quarterly to address the impacts of all proposed product design changes.

With advanced manufacturing operations in multiple countries, it is especially important that Jacuzzi Group remains up to date with the various safety regulations and requirements that exist in each locality. This understanding drives the Company’s New Product Innovation team to seek innovative methods for sharing information about product safety throughout Jacuzzi’s value chain. Jacuzzi’s New Product Innovation team has created resources such as a New Product Checklist that is regularly distributed across Jacuzzi sites to be used as a resource for sharing critical product safety information with consumers.

An honest commitment to product safety relies on more than just a streamlined manufacturing process and helpful product safety resources. In many cases, it also takes a team of well-trained individuals who can teach consumers how to operate products safely. For this reason, Jacuzzi dedicated resources toward developing a detailed training program to offer to its third-party sales teams. As a part of this program, external vendors and sales teams alike are regularly taught crucial details surrounding Jacuzzi’s different product designs, material updates, and internal protocols that make its products safe to own and operate.

The product safety training provided to Jacuzzi stakeholders directly impacts consumers’ perspectives and impressions of product upgrades. This is especially true when innovative technology is incorporated into familiar systems and products. As an example, Jacuzzi’s innovative True™ water care development, which is further referenced in the water section of this report, relies on detailed product safety trainings offered to dealers to assist them with communicating product safety updates to consumers. Product safety improvements resulting from the incorporation of this nanobubble technology include an avoidance of the chemical downsides of salt disinfection systems, a reduction in chlorine to a level 50-75% less than in a glass of drinking water, and a 99.9% removal of bacterial and viral contaminants without chlorine or other chemical additives.

Jacuzzi continues to improve the quality of its training resources and now offers product safety training sessions with virtual alternatives available to non-local stakeholders. To create these virtual training resources, Jacuzzi designed a small on-site film studio in one of its locations. It was within this studio where Jacuzzi Group filmed new product safety training courses that were later provided to its third-party partners as a resource to use to educate consumers. The inclusion of virtual training has been an improvement to stakeholders as it allows important product safety information to be relayed through a process to one that does not require as many resources, but still carries the same impact.

PERFORMANCE

Each of Jacuzzi Group’s products goes through numerous rounds of rigorous testing by its Product Development and Innovation teams who ensure that the products meet or exceed all regulatory requirements and applicable safety standards. Initiating test protocols and product safety assessments for both existing and new products is an important part of Jacuzzi’s product safety efforts. Listed below are some of the qualification tests that that the Company adheres to during the manufacturing and testing of its products:

California Energy Commission (CEC) Testing

Home Delivery and Installation Tests

7-Day Shipping Test Horizontal/ Vertical

Vibration Test SPA Horizontal/ Vertical

Plumbing Fatigue Test

Static and Dynamic Seat Loading Tests

Servicability Testing

Software Testing

Stuctutal Integrity Testing

Total Load Test

Electrical Safety Testing (ETL)

Uniform Plumbing Code (UPC)

European Union: Common Provisions Regulation

Load Test for Bathtube and Shower Seats

Load Test for Bathtub Rims and Bottoms

Construction Products Directive (CPR)

EMC Directive: 2014/30/EU

Low Voltage Directive: 2014/35/EU

Load Test for Shower Thresholds and Bottoms

American Society for Testing and Materials

Uniform Swimming Pool, Spa, and Hot Tub Code (USPC)

Associação Brasileira de Normas Técnicas

Instituto Nacional de Metrologia, Qualidade e Tecnologia

Low Voltage Directive: 2014/35/EU

EMC Directive: 2014/30/EU

Electrical Safety Testing (ETL, TUV Rheinland, TUVsud)

Virginia Graeme Baker Pool & Spa Safety Act

Association of Pool and Spa Professionals

RoHS Directive 2015/863/EU

American Society for Testing and Materials

WORKFORCE ENGAGEMENT & DEVELOPMENT

OVERVIEW

Jacuzzi Group recognizes that an engaged and well-developed workforce is integral to establishing a sustainable business. For this reason, the Company employs a wide array of workforce engagement and development strategies to keep team members happy and engaged with the duties they are tasked to perform. As employees are hired and change positions, it is especially important to ensure that the staff understands the responsibilities associated with their roles. Employee training and workforce development resources are important tools used to relay useful information to Jacuzzi stakeholders. These are some of the considerations that drive the organization’s decision to support the personal and professional development of its employees.

The main workforce engagement projects supported by Jacuzzi in 2023 were centered around creating educational resources to help team members flourish in their roles, sending surveys to gauge interest and engagement, and an increased focus on the development of a diverse workforce.

EMPLOYEE ENGAGEMENT

As a global organization with thousands of roles, it can be difficult to ensure that team members are updated on recent progress. For this reason, Jacuzzi has developed a streamlined process to provide employees with the resources, skills, and the understanding they need to remain updated on the Company’s most important developments. Jacuzzi’s robust employee engagement strategy utilizes mandatory employee training, global town hall meetings, wellness webinars, and competitive health benefits to keep its team members informed, happy, and satisfied with their positions within the Company.

In 2023, Jacuzzi Group team members completed more than 78,000 hours (about 9 years) of employee training to assist in their development. Training courses focused on topics such as Health and Safety, Professional Development, Job Skills, Cybersecurity and Diversity and Inclusion. This is the third year of Jacuzzi’s extended engagement training, which continues to be refined based on the feedback received through employee engagement surveys. Within the engagement surveys, Jacuzzi requests

2023 EMPLOYEE TRAINING DISTRIBUTION

Health and Safety: 31,200 hours

Required Job Skills: 27,300 hours

Diversity & Inclusion: 7,800 hours

Professional Development: 3,900 hours

Cybersecurity Awareness: 3,900 hours

Other Training: 3,900 hours

TOTAL TRAINING: 78,000 HOURS

employee feedback on many topics, including the most and least beneficial elements of the surveys so they can continue to be refined each year. The results from Jacuzzi’s most recent engagement survey communicated that employees were most interested in the environment, onboarding protocols, and professional development opportunities. Impacts from the engagement survey were seen immediately as Jacuzzi took the feedback it received from employees and made related changes like improving its onboarding process for new hires through the implementation of automated processes and increased coverage.

Upon learning that employees wanted more knowledge about Jacuzzi’s operations, it became clear that the Business needed to adapt its engagement strategy to create a better forum where employees could be made aware of developments. This led to the inception of Jacuzzi’s monthly global town hall meetings that are

mandatory for every employee. During these meetings, Jacuzzi’s executive management team communicates important updates and relevant changes across its various business lines. As executives provide progress updates, team members are encouraged to ask questions about the developments. Jacuzzi’s Global Town Hall meetings are led by its Chief Executive Officer, executive management team, and occasionally by other leaders from around the Organization who share key details related to their work. Jacuzzi believes that these meetings are invaluable for uniting its teams and for ensuring that relevant information is communicated throughout the Company’s operations.

Like the town hall meetings where Jacuzzi’s progress is reviewed, the Company’s executive management team also conducts regular Leadership Team meetings to discuss updates. Jacuzzi’s Leadership Team meetings are particularly important to its long-term strategy as they outline the direction that the executive team wants to take the Business. These meetings give senior leadership the opportunity to consider how any proposed changes will impact Jacuzzi teams and how the changes should be communicated to employees if they are eventually implemented.

Fostering engagement through educational programs that support Jacuzzi employees is important, but the Company also recognizes that in some cases, engagement is facilitated through the rewards such as the perks and benefits that companies offer to team members. This drove Jacuzzi’s decision to increase the scope of benefits offered to employees. One specific change Jacuzzi Group has committed to is offering 12 weeks (about 3 months) of paid vacation to primary care givers of newborn children and 1 week of paid vacation to secondary caregivers. Such practices exemplify Jacuzzi’s commitment to the personal development of its employees.

SOCIAL > WORKFORCE ENGAGEMENT & DEVELOPMENT

DEVELOPING A DIVERSE WORKFORCE

Jacuzzi Group aligns its operations to support all employees regardless of their cultural backgrounds and identities. The Company contributes resources toward diversity initiatives to facilitate an equal, fair, and safe environment that remains supportive of differing races, genders, and ethnicities. Jacuzzi treats its employees equally and has re-designed roles and job descriptions to be more inclusive of differing values, beliefs, and perspectives. At every level, from onboarding to offboarding, Jacuzzi takes the necessary measures to be inclusive of a diverse range of individuals with varying value systems.

Jacuzzi recently adapted its employee onboarding process to source a more diverse pool of final candidates. This was achieved by tailoring job descriptions to ensure that they contain more inclusive language. The Company believes that attracting a diverse range of employees is

an important first step to achieving workforce equality and tailors its programs to support a diverse workforce of varying perspectives.

In addition to its efforts to support ethnic and cultural diversity, Jacuzzi Group also puts an extremely high importance on its ability to attract, retain and develop female employees. The Organization made this commitment to locate and attract more female engineers because it understands that there is a lack of female representation in the manufacturing sector and wants to ensure that its operations remain inclusive of all genders. In line with Jacuzzi Group’s objective to acquire more female representation, the Company completed a pay parity adjustment to standardize and equalize the pay received by males and females with similar roles and responsibilities. As Jacuzzi continues down a path of gender equality, its goal is to increase the amount of female representation in top-level management positions.

PERFORMANCE

At the conclusion of 2023, Jacuzzi Group’s global workforce comprised 2,614 employees. This total is approximately 35% smaller than the Organization’s headcount at the end of December 2022, and a nearly 50% reduction in staff from 2021. Jacuzzi will continue to fluctuate in size as demand for its products increases and decreases year over year, but the workforce engagement and development practices employed by the Company will continue to support a more learned, engaged, and diverse workforce.

As Jacuzzi adapts its practices to support a diverse stakeholder base, identifying new methods of acquiring feedback about organizational changes becomes more important. For this reason, Jacuzzi Group sent an engagement survey to 100% of its employees to better understand the topics they are most interested in learning more about. This is the second year in a row that the

Business sent surveys to its team members, and their results have already helped Jacuzzi adapt its messaging.

In Jacuzzi Group’s most recent employee engagement survey, the topics of most interest included the environment, relationships with supervisors, onboarding protocols, and professional development opportunities. The response rate of employees who responded to the survey was 64%. Moving forward, Jacuzzi hopes to see this number rise as it begins to use the data from these engagement surveys to make suggested changes to the Organization.

GOVERNANCE

DATA PRIVACY AND SECURITY

OVERVIEW

Responsible value chain management relies on advanced data privacy and security practices to ensure the integrity of stakeholders’ confidential information. Jacuzzi Group understands the risks and opportunities associated with data security and has designed a robust IT management system that incorporates firewalls, multi-layer authentication, continuous endpoint and event monitoring, and strict password regulations to maintain the safety of its customers and employee’s confidential information. To incorporate top-level cybersecurity practices, Jacuzzi has aligned its operations to maintain compliance with a variety of global data security and privacy related agencies and regulations such as NIST’s CSF (Cybersecurity Framework).

In 2023, Jacuzzi improved its IT operations by promoting a new Chief Information Officer, incorporating more detailed security employee training sessions for all employees, completing IT infrastructure upgrades at its largest manufacturing sites, updating its Acceptable Use Policy (AUP) and Incident Response (IR) policy, implementing global malware analysis, reattaining a variety of security program certifications and migrating Jacuzzi’s Active Directory at its largest facilities.

UPHOLDING DATA PRIVACY AND SECURITY

Jacuzzi Group’s internal cybersecurity policy outlines the Company’s expectations for employees as they navigate the internet while using Jacuzzi’s network. It is imperative that Jacuzzi team members, especially those who have access to confidential data, fully understand the risks they face when operating on Jacuzzi Group servers. Jacuzzi team members have a shared responsibility to monitor, identify, and report any suspected IT risks that they believe could result in a cybersecurity threat.

These expectations are further outlined within the Organization’s Cybersecurity policy and are included within the updated IT training courses which are offered to 100% of Jacuzzi employees. Beyond the levels of protection offered through policy documents, Jacuzzi Group also regularly sends emails to notify employees of potentially damaging messages and phishing links that could be found within their inboxes.

Jacuzzi Group further improved its data security and privacy program by establishing several important projects that furthered the protection of its stakeholders’ classified information. The first of these projects was aimed at making sure the Organization is financially protected in the case of a cybersecurity incident or data breach. To this end, the Company increased the coverage of its cybersecurity insurance to a total value of 10 million dollars annually.

Jacuzzi’s IT security program is conformed to fit the ISO/ IEC 27001 framework. By adhering to the International Organization for Standardization (ISO) framework, Jacuzzi confirms that the Organization’s Information Security Management System (ISMS) is aligned with the best practices outlined by ISO’s internationally recognized standards. The changes made to Jacuzzi’s IT security program are also outlined in the Company’s confidential Data Security Policy which details items such as GDPR and IT penetration testing.

PERFORMANCE

To reinforce its dedication to creating a best-in-practice data privacy and security program, Jacuzzi hired more on-site and remote IT and Cybersecurity specialists in 2021, 2022, and 2023. The Company has dedicated resources toward its IT security plan because it believes in going beyond standard compliance to remain proactive regarding upcoming regulations and the protection of its stakeholder’s personal information. Jacuzzi is committed to aligning its operations with best practice IT regulations to provide customers and employees alike with safe, regulated, and sensible privacy and security practices in the interest of the security of its business and stakeholders.

In 2023, Jacuzzi’s data security efforts resulted in no data leaks, no data breaches, and no thefts of customer data. The last material data privacy and security incident occurred in December 2020 when the Business experienced a small ransomware incident. In response, Jacuzzi Group took most of its information technology servers offline to restore its systems. During this time, the Company continued to manufacture and ship products at each of its principal facilities, but in some cases, at a diminished capacity. In early 2021, normal operation of servers and systems was restored, and normal business resumed. The cybersecurity incident did not have a material impact on Jacuzzi’s operations or financial performance, and no regulatory actions or consumer complaints occurred as a result.

ETHICS

OVERVIEW

Jacuzzi Group is committed to inspiring joy and well-being through the innovative wellness products it offers to consumers. To fulfil its mission of “Doing Well by Doing Good,” Jacuzzi Group must embody the core values of One Team, Integrity, Respect, Well-Being, and Ownership. At every level of the Business, Jacuzzi Group’s stakeholders are held to the highest ethical standards. The Company’s contractors, suppliers, distributors, employees, and all other stakeholders are expected to uphold the ethical principles outlined within its Code of Conduct and Business Ethics. To reinforce its commitment, Jacuzzi has completed a number of ethics-based improvements to its processes, including, updating policy documents, implementing global ethics training for 100% of employees, and creating educational materials that are posted at each facility and outline the proper reporting process for any employees who want to speak to a representative from a third-party whistleblower hotline.

POLICY UPDATES

In 2023, Jacuzzi Group continued to update its internal policy documents to incorporate changes related to the development of its ethics and compliance program. The Company’s efforts began with making annual updates to its Code of Business Conduct and Ethics, which serves as a practical guide for determining if an occurrence falls within the ethical expectations and standards of the Organization. These changes were built on the back of 2022 updates which led to the distribution of an updated version of the Code of Conduct and Ethics to all global employees and a more regular frequency for updating the Organization’s governance documents.

Another recent update made to Jacuzzi Group’s governing resources was a revamp of its Employee Handbook. Jacuzzi Group’s employee handbook needed to be updated to support the evolving standards and expectations set for employees. As the world goes through changes, it is important that Jacuzzi Group continues to update the expectations it has for team members. In past versions of the employee handbook, commitments to new material topics such as sustainability were not factored in but are now a focal point of Jacuzzi Group’s long-term business strategy.

JACUZZI

CORE VALUES

ONE TEAM

INTEGRITY

RESPECT

WELL-BEING

OWNERSHIP

An important addition to the most recent version of Jacuzzi Group’s employee handbook was the incorporation of a commitment to “living our values.” Jacuzzi believes that this was a critical detail to include because it recognizes the direct correlation between ethical decision making and successful business practices. By better outlining its ethical expectations within the employee handbook, Jacuzzi provides its team members with the knowledge and resources needed to make good decisions and to operate within the Company’s ethical standards.

COMPLIANCE PROGRAM ADMINISTRATION

To formalize its commitment to ethics and compliance, Jacuzzi Group created a multi-departmental team to assist employees with their alignment to Jacuzzi’s ethical values. This team, called the Law & Risk Team, is comprised of Jacuzzi’s Board of Directors, Chief Executive Officer, and members from Executive Leadership. Together, this group sets the expectations for the Company’s ethics program and drives its final decision-making when it comes to creating the parameters that stakeholders must follow surrounding ethics and compliance.

We are and operate as ONE TEAM. Productivity and efficiency are realized when we are working cohesively towards a common goal based on our shared core values.

TRUST & INTEGRITY strengthen our relationships with internal and external partners. When we perform our roles with ethical purpose, we better trust one another to keep our promises and act honorably in all situations.

We RESPECT and value the richness of our diverse workforce and the environments in which they operate and embrace opportunities to inclusively move the Company forward together.

Jacuzzi Group’s priority is to live our brand and elevate the health, safety, and WELL-BEING of our employees. Work-life balance reinforces healthy behaviors and is a strategy that improves our workplace and our health.

We thrive in a culture of accountability, and value team members who are passionate about Jacuzzi Group. We are invested in the collective success of our teams and cultivate an environment of empowerment and OWNERSHIP.

It was during these meetings that the team agreed on the implementation of company-wide global ethics training, which was followed by a compliance awareness survey. Jacuzzi Group’s focus on ethical compliance can be seen throughout the Organization. As each business adapts to evolving regulations, Jacuzzi’s manufacturing facilities continue to post signage outlining the changes and the availability of the whistleblower system that is offered to employees to ensure they feel empowered to report any suspected issues of noncompliance. If an incident is reported through the whistleblower system, the Company’s Law & Risk team investigates the report to determine if the incident violates any defined ethical principles.

PERFORMANCE

In 2023, Jacuzzi Group had 0 confirmed incidents of corruption, 0 employees disciplined for corruption, 0 business partners terminated due to corruption, and 0 anti-trust and anti-compete violations. There were no reports or confirmed cases of corruption at any level of Jacuzzi’s business in 2023, and the Organization did not receive any reports of ethical issues disclosed through its 3rd party whistleblower hotline. The Company feels that these results are indicative of an improving ethics and compliance system. Moving forward, Jacuzzi will continue to outline its expectations of good ethical behavior and will make its expectations known through consistent updates to internal policy documents and employee resources.

COMPLIANCE PROGRAM OVERVIEW 2022

FROM THE JACUZZI ARCHIVES: “Jack Benny, famed motion picture and TV star, credits the Jacuzzi Whirlpool Bath for ‘making me look less than my 39 years.’”

INDUSTRY STEWARDSHIP

OVERVIEW

As established leaders within the spa and bath space, Jacuzzi Group works with many widely known industry partners to optimize its global operations. Jacuzzi team members prioritize the formation of strong partnerships with innovative industry groups that drive progress throughout the consumer durables sector. The Company works closely with these groups to identify the most relevant risks and opportunities to Jacuzzi’s business, and to remain informed about emerging industry trends. The relationships established with organizations across Jacuzzi’s key product categories are critical to its sustainability strategy. As the Organization aligns its operations with more industry groups, Jacuzzi’s long-term objective is to establish itself as an organization that other companies can use as a model for best practice industry stewardship initiatives.

ESTABLISHING SUSTAINABLE PARTNERSHIPS

As a world-renowned product manufacturer in the consumer durables space, the industry partnerships Jacuzzi Group forms are highly visible across its sector. With representation across North America, Europe, South America, and Australia, Jacuzzi recognizes that many organizations will attempt to adopt similar practices, thus increasing the importance of incorporating valuable industry stewardship partnerships.

In 2023, Jacuzzi Group worked with several new partners to prioritize sustainability across its operations, in addition to becoming more involved with organizations that it supported previously. A few of Jacuzzi Group’s most prominent sustainability-based partnerships that were furthered included organizations such as B-Labs/ Corporation, California Green Business, the California Energy Commission, United Nations, and the Science Based Targets Initiative.

B-Labs is a nonprofit organization that has created a certification program that allows for-profit companies to report aggregated sustainability data based on thirdparty standards. In 2023, Jacuzzi Group began working with B-Labs to better understand the benefits of attaining its renowned B-Corporation Certification. Once Jacuzzi Group had determined that its sustainability program was almost advanced enough to apply for B-Corporation Certification, the Company worked to update some of its operations and disclosures to better support the sustainability guidelines of the third-party evaluators. After a few changes had been made, Jacuzzi applied for certification with an industry assessment score much higher than needed to receive a positive result. Moving into 2024, Jacuzzi is awaiting approval and expects to become B-Corporation certified by late 2024 or early 2025.

Another important engagement that started in 2023 was Jacuzzi’s work with California Green Business Certification Inc. to register its headquarters as a certified Green Business. Jacuzzi Group’s engagement with California Green Business Certification was established in early 2023 when Jacuzzi was contacted with an opportunity to certify its California locations. Jacuzzi Group’s team reviewed the certification opportunity and recognized it as a chance to ensure that Jacuzzi’s headquarters complies with the state’s sustainability standards. As a part of the certification process, which was completed in late 2023, Jacuzzi removed individual use plastics, purchased energy star appliances, and completed other upgrades to meet modern sustainability regulations. Jacuzzi plans to re-attain this certification annually.

SETTING SUSTAINABLE OBJECTIVES WITH EXTERNAL PARTNERS

Beyond establishing new relationships with emerging sustainability partners, a core element of Jacuzzi’s industry stewardship program involves developing relationships with some of its closest industry stakeholders. In 2023, Jacuzzi advanced its relationship with the Science-Based Target Initiative (SBTi) and progressed toward its four science-based targets set in 2022. In 2023, Jacuzzi Group worked closely with SBTi and its ownership group to create a strategy document outlining the initiatives and budget needed to support the achievement of its longterm science-based targets.

Another external partner that Jacuzzi reports its sustainability data to is the United Nations (UN). The United Nations has created a call to action for companies to align their operations in support of the ten universally accepted principles of human rights. The attestation created by the UN asks responding companies to submit details about their labor, environmental, and anti-corruption programs, in addition to the ten specific principles they follow.

First launched in 2000, the United Nations Global Compact’s Communication on Progress (CoP) is the largest sustainability initiative in the world with more than 9,500 companies from more than 160 countries registered as signees. 2023 was the third year in a row that Jacuzzi Group structured its sustainability operations based on the guidance set forth by the UNGC and its Communication on Progress, as well as the third year it served as an active signatory. Moving forward, the Company will continue to align its operations with recommendations made by stewardship groups like the UNGC.

PERFORMANCE

The knowledge formed through Jacuzzi Group’s interactions with sustainable industry groups helps the Company better align with its consumers’ interests and expectations. As new industry standards arise and technology develops, Jacuzzi will remain positioned to adapt its program to best fit the evolving needs of consumers. To do so, the Organization will continue to rely on partnerships with industry peers to assist in monitoring the consumer durables sector and its related innovations.

Moving into 2024, Jacuzzi will continue to build its industry stewardship program with the goal of furthering its valuable partnerships that support the development, performance, and efficiency of Jacuzzi products. In addition to the sustainable partners detailed above, Jacuzzi also works closely with the following industry groups:

GLOBAL INDUSTRY GROUPS WE SUPPORTED IN 2023

National Kitchen & Bath Association

Harvard Joint Center of Housing Studies

Swimming Pool & Spa Association of Australia Ltd

Pool and Spa Association Ltd New Zealand

Pool & Hot Tub Alliance’s International Hot Tub Association

Pool and Hot Tub Council of Canada

The British and Irish Hot Tub Association

Professione ACQUANET

ASSOPISCINE — a member of EUSA (European Union of Swimming Pool and Spa Associations)

FederlegnoArredo — ASSOBAGNO

ANGAISA

California Energy Commission (CEC)

United Nations Global Compact (UNGC)

Science-Based Target Initiative (SBTi)

Global Reporting Initiative (GRI)

B Labs/Corporation (B-Corp)

California Green Business

Corporate Sustainability Reporting Directive (CSRD)

International Organization for Standardization (ISO)

GRI INDEX

GRI

STANDARD

DISCLOSURE

GENERAL DISCLOSURES

DESCRIPTION

Organizational Profile

102-1

102-2

102-3

102-4

102-5

Name of the organization Jacuzzi Group

Activities, brands, products, and services

Location of headquarters

Location of operations

Ownership and legal form

Brands: Jacuzzi, Sundance Spas, Sunrise Spas, Dimension One Spas, BathWraps, Jacuzzi Bath Remodel, DreamMaker Spas, Hydropool Hot Tubs & Swim Spas, ThermoSpas, Vortex Spas

Irvine, California

Countries: United States, Canada, Mexico, Italy, United Kingdom, France, Brazil, Chile, Australia, New Zealand

The main operating business for Jacuzzi’s spa products is Jacuzzi Brands, LLC. For bath products, the main operating business is called Jacuzzi, Inc. All Jacuzzi Group entities are owned by InvestIndustrial, a European private equity firm.

102-6

GRI 102: General Disclosures 2016

102-7

102-8

Markets served

Scale of the organization

Information on employees and other workers

102-9 Supply chain

102-10

102-11

Significant changes to the organization and its supply chain

Precautionary Principle or approach

Jacuzzi’s products are available globally, with its primary customers being specialty, big-box, and internet retailers. Jacuzzi also sells products directly to consumers, builders, plumbers, and installation service providers.

To maintain the confidentiality afforded to private companies, Jacuzzi continues to choose not to publicly report its net sales and total capitalization.

The total number of employees at the end of the reporting period was 2,614.

Jacuzzi procures components and finished goods for its spa and bath business units across the Jacuzzi Hot Tubs, Sundance, Sunrise, Dimension One, BathWraps, Jacuzzi Luxury Baths, Dream Maker, Hydropool, and Vortex brands. Major commodities include showers, pumps, electronics, acrylic, synthetic wood, spa covers, jets, resin, foam, wood, packaging, and filters. Jacuzzi operations are global, its core supply chain is in the United States.

There were no significant changes to Jacuzzi Group or its supply chain in 2023.

In 2023, Jacuzzi Group’s precautionary measures to reduce carbon emissions were centered around progressing toward the achievement of its long-term Science-Based Targets.

GRI 102:

General Disclosures 2016 102-12

Jacuzzi Group endorses the following external sustainability initiatives: United Nations Global Compact, Science-Based Target Initiative, United Nations Sustainable Development Goals, Global Reporting Initiative, and the Forest Stewardship Council, among others. 102-13

External initiatives

Governance

Membership of associations

Jacuzzi Group supports the following associations: National Kitchen & Bath Association, Harvard Joint Center of Housing Studies, Swimming Pool & Spa Association of Australia Ltd, Pool and Spa Association Ltd New Zealand, Pool & Hot Tub Alliance’s International Hot Tub Association, The California Energy Commission, United Nations Global Compact, Science-Based Target Initiative, Pool and Hot Tub Council of Canada, The British and Irish Hot Tub Association Professione ACQUANET, ASSOPISCINE, and FederlegnoArredo –ASSOBAGNO, ANGAISA

While Jacuzzi’s business includes many different brands, the Company operates as One Team. Employees treat each other, customers, suppliers, and all other stakeholders with respect, dignity, and professionalism. Jacuzzi’s mission is to inspire joy with innovative wellness products. Stakeholders are expected to act with integrity, and commit to always doing the right thing, even when nobody is watching.

Jacuzzi Group is fully owned by a European investment fund called InvestIdustrial. Jacuzzi Group’s internal governance structure is overseen by a Board of Directors that meets regularly with senior executives to adapt its strategies based on the needs of consumers.

Stakeholder Engagement

agreements

Dealers, Consumers, Suppliers, local communities, NGOs, policymakers, and industry peers, among others.

of Jacuzzi employees are covered by collective bargaining agreements.

GRI 102: General Disclosures 2016

Reporting Practices

102-45

102-46

102-47

102-48

102-49

102-50

102-51

102-52

102-53

102-54

102-56

TOPIC-SPECIFIC DISCLOSURES

Environmental Topics Climate Change

GRI 103: Management Approach 2016

GRI 302: Energy 2016

Entities included in the consolidated financial statements

As a privately held company, Jacuzzi Group chooses not to publicly disclose its consolidated financial statements.

Defining report content and topic Boundaries See Our Approach

List of material topics See Our Approach

Restatements of information

Scope 3 GHG emissions results from Jacuzzi’s 2021 and 2022 Sustainability Reports have been updated, restated, and year over year comparisons have been made using the corrected data.

Changes in reporting No changes in the reporting process.

Reporting period January 1, 2023 – December 31, 2023

Date of most recent report June 30, 2023

Reporting cycle Annual

Contact point for questions regarding the report Tanner Bain (Tanner.Bain@jacuzzi.com)

Claims of reporting in accordance with the GRI Standards

External assurance

This report has been prepared in accordance with the GRI Standards: Core option.

For the second year in a row, Jacuzzi verified all Scope 1 and 2 data found within its annual sustainability report.

Explanation of the material topic and its Boundary See Climate Change

The management approach and its components See Climate Change

GRI 305: Emissions 2016

Energy indirect (Scope 2) GHG emissions

Materials Sourcing

Explanation

GRI 103: Management Approach 2016

Evaluation

GRI 301: Materials 2016

Recycled

Explanation

GRI 103: Management Approach 2016

GRI 303: Water 2018

GRI 103: Management Approach 2016

GRI 205: Anti-Corruption 2016 205-3

GRI 206: Anti-Competitive Behavior

Custom KPI

Data Privacy and Security

GRI 103: Management Approach 2016

GRI 418: Customer Privacy 2016

Stewardship

Custom KPI

Custom KPI

Confirmed incidents of corruption and actions taken

Legal actions for anti-competitive behavior, anti-trust, and monopoly practices

Whistle blower system / policy

0 confirmed incidents of corruption were reported in 2023, therefore no corrective action was needed.

0 legal actions were taken for anti-competitive behavior, antitrust, or monopoly practices in 2023.

0 reports of ethical issues were disclosed through our 3rd party whistleblower hotline in 2023.

Explanation of the material topic and its Boundary See

The management approach and its components See

Evaluation of the management approach

Substantiated complaints concerning breaches of customer privacy and losses of customer data See

Explanation

Sustainable partnerships that set Jacuzzi apart from competitors See Industry Stewardship

Number of spas that exceed California Energy Commission (CEC) requirements by 20%

Advocacy efforts (coalitions joined, pledges signed, etc.)

The majority of Jacuzzi’s actively produced spa models exceed California Energy Commission’s energy requirements by a minimum of 20%.

See Industry Stewardship