CLIMATE CHANGE Overview Climate change is a pressing environmental issue that has lasting impacts across all industries, people, and the planet. We recognize the risks that climate change presents within our value chain and have established significant measures to reduce our carbon emissions and overall energy consumption. 2021 was the first year we tracked and recorded Scope 3 emissions data. To do so, we worked with an external consultancy that helped us identify how large of a role Scope 3 emissions play in our overall carbon footprint. The final evaluation determined that Scope 3 makes up over 98% of our annual emissions. These results closely resemble the performance of other companies that manufacture electricity-reliant products. Within Scope 3, the categories that have the largest impact on our business are “use of sold products” and “purchased goods and services.” Product use, specifically the energy required to heat water and power our products, accounts for more than 60% of our organization’s total annual emissions. To address this impact, we evaluated the sustainability factors of the materials we use to make our products and how our consumers interact with them. We then developed consumer education initiatives and training materials to help our customers understand the energy impacts associated with using their products across various settings.
Understanding Our GHG Emissions The expansion of our greenhouse gas data collection has helped us understand the emissions associated with our business at all levels. Information gleaned from our 2021 greenhouse gas inventory is currently being
GOALS
• Offset 100% of our Scope 1 and 2 emissions in 2022 • Work with the Science-Based Target initiative to develop absolute emissions targets • Procure 25% of our electricity from renewable sources by 2025
used to establish SBTi (Science Based Targets Initiative) targets and identify greenhouse gas (GHG) reduction opportunities across our global sites. We further codified our commitment to understanding the impacts of environmental sustainability by creating an Executive Sustainability Steering Committee in 2021. This committee consists of our Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, and several other senior leaders who meet to discuss our climate change strategy. The primary role of the Executive Sustainability Steering Committee is to review the responsibilities surrounding climate impact and align on sustainability initiatives to implement at our global sites. After these meetings are complete, our internal ESG team arranges quarterly update calls with each manufacturing site and warehouse to communicate relevant information decided upon by the Executive Sustainability Steering Committee.
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